UC-NRLF 


M7    lib 


LIBRARY 

OF  THE 

UNIVERSITY  OF  CALIFORNIA. 

QIF~r  OF 


Received 
Accession  No.  70  1^ 


-    Class  No. 


DOCUMENTS 
DEFT. 


^ 

^3 


u 


I 


REPORT 


OF    THE 


Special  Tax  Commission  of  Maine, 


APPOINTED    UNDER 


RESOLVE   OF   THE    LEGISLATURE, 


Approved  March  8th,  i«8g. 


AUGUSTA : 

BUKLEIGH  &  FLYNT,  PRINTERS  TO  THE  STATE. 
1890. 


RESOLVE. 

70  1^07 

To  provide  a  Commission  to  inquire  into  the  system  of  taxation  of  other  states  and  this  state 
and  report  to  the  Governor  and  Council. 

Resolved,  That  the  governor  be  and  hereby  is,  by  and 
with  the  consent  of  the  council  authorized  and  empowered  to 
appoint  a  commission  consisting  of  three  persons  whose  duty 
it  shall  be  to  inquire  into  the  system  adopted  by  other  states 
to  raise  revenue  for  state,  county  and  municipal  expenses, 
and  to  provide  for  a  more  equal,  just  and  equitable  system  of 
taxation,  of  all  kinds  of  property  in  this  state,  for  the  pur- 
poses of  said  state,  county  and  municipal  expenses,  that  shall 
be  better  adapted  to  the  wants  of  this  state  and  reduce  the 
rate  of  taxation  of  the  people ;  and  to  provide  for  a  better, 
and  more  effectual  system  of  assessment  and  collection  of 
taxes,  in  this  state ;  said  commissioners  to  be  paid  from  any 
money  in  the  state  treasury  not  otherwise  appropriated,  such 
a  sum  for  their  services  as  shall  be  allowed  by  the  governor 
and  council  and  for  necessary  clerk  hire  and  incidental  ex- 
penses and  to  report  to  the  governor  and  council  on  or  before 
the  first  day  of  October  in  the  year  of  our  Lord  eighteen 
hundred  and  ninety  ;  and  that  the  governor  shall  cause  their 
report  to  be  printed  and  distributed  at  the  state's  expense, 
three  copies  of  which  shall  be  sent  by  mail  or  otherwise  to 
each  member  of  the  present  legislature  to  their  proper  resi- 
dence ;  and  one  thousand  copies  of  said  report  shall  be  pro- 
vided for  the  use  of  the  next  legislature  of  this  state. 

Approved  March  8,  1889. 


REPORT. 


To  the  Honorable  Edwin  C.  Burleigh,  Governor  of  the  State 
of  Maine: 

The  Commissioners  appointed  by  your  Excellency  under 
the  foregoing  resolve  of  the  Sixty-Fourth  Legislature  organ- 
ized on  the  nineteenth  of  November,  1889,  and  at  once  began, 
an  examination  of  the  general  subject  of  taxation,  within  the 
scope  of  the  resolve,  which  is  sufficiently  broad  to  allow  all 
necessary  research  for  improved  methods.  Our  first  endeavor 
was  to  determine  what  were  the  defects  of  our  present  system 
which  afford  just  cause  for  complaint,  and  which,  in  the  judg- 
ment of  the  legislature,  make  the  inquiry  necessary.  The 
Commission  selected  A.  M.  Goddard,  Esq.,  of  Augusta,  as 
its  clerk  whose  services  have  been  efficient  and  valuable. 

To  acquire  the  desired  information,  we  began  to  hold  meet- 
ings of  the  Commission  at  the  State  House  in  Augusta,  in 
December,  1889,  for  the  purpose  of  hearing  parties  desiring 
to  be  heard  and  for  discussion.  We  invited  discussions 
through  the  press  of  the  State  by  notice  in  the  leading  news- 
papers of  the  several  sections  and  sought,  by  correspondence 
and  interviews  with  persons  whom  we  thought  to  have  had 
experience  in  matters  of  taxation  and  by  circulars  of  inter- 
rogatories to  boards  of  assessors,  to  inform  ourselves  in  rela- 
tion to  the  particular  provisions  of  our  present  statute  which 
are  defective  or  inadequate  and  as  to  its  deficiencies.  After 
an  extended  investigation  of  this  kind,  we  began  an  examina- 
tion into  the  systems  of  taxation  in  vogue  elsewhere  in  this 
country,  and  to  do  this  systematically  and  in  such  way  as  to 
gain  the  most  information  in  the  time  allotted  us,  we  pro- 


4  REPORT    OF    TAX    COMMISSION. 

ceeded  to  collate  and  arrange  in  order  an  epitome  of  so  much 
of  the  tax  laws  now  in  force  in  the  several  states  as  are  mate- 
rially different  from  those  of  Maine.  We  did  not  deem  it 
essential  to  extend  this  inquiry  into  every  one  of  the  states, 
yet  it  was  necessary  to  make  the  examination  widely  compre- 
hensive, and  the  Jaws  of  every  state  which  included  any  fea- 
tures which  we  believed  it  desirable  to  incorporate  into  the 
system  of  this  State,  we  have  examined  with  care.  Having 
so  examined  the  laws  of  the  several  states  sufficiently  to 
acquire  a  general  knowledge,  at  least,  of  the  several  revenue 
systems,  we  visited  several  states,  whose  systems  contain 
features  radically  different  from  ours,  for  the  purpose  of  get- 
ting definite  information  as  to  the  practical  workings  of  such 
systems.  For  this  purpose,  New  Hampshire,  Vermont, 
Massachusetts,  Connecticut,  Rhode  Island  and  New  York 
were  visited,  which  states  represent  very  well  the  more 
pronounced  differences  of  method  in  raising  revenues,  as 
employed  in  the  United  States,  both  for  state  and  local  pur- 
poses. We  have  also  studied  with  an  anxious  desire  to  learn 
of  some  method  yet  untried  in  this  State,  which  contains  the 
promise  of  practical  efficiency,  the  theories  of  several  promi- 
nent economists  and  writers  upon  social  science. 


SYSTEMS    OF    TAXATION. 

The  disposition  to  conceal  property  from  the  assessor  has 
always  prevailed.  Even  in  the  primitive  days  of  New  Eng- 
land, when  the  forms  of  taxable  property  were  few,  extra, 
ordinary  methods  had  to  be  resorted  to  to  bring  all  the  taxable 
property  under  assessment.  Perhaps  as  curious  a  tax  law  as 
any  .was  that  of  Rhode  Island  passed  in  1673,  as  follows  : 

"If  the  Assembly  judge  any  have  undervalued  their  estate, 
each  shall  be  required  to  give  in  to  the  Treasurer  a  true  form 
of  an  Inventory  of  all  their  Estates  and  Strength  in  particu- 
lar, and  give  in  writing  what  proportion  of  Estate  and 
Strength  in  particular  he  guesseth  ten  of  his  neighbors.,  mint- 
ing them  in  particular,  hath  in  Estate  and  Strengtli  to  ///,< 
Estate  and  Strength." 


REPORT    OB1   TAX    COMMISSION.  0 

If  property  should  now  he  assessed  at  a  valuation  set  by 
ones'  neighbors,  there  would  be  plenty  of  revenue. 

The  present  system  of  taxation  in  this  State  is  substantially 
that  borrowed  from  Massachusetts  at  the  time  of  the  separa- 
tion, and  is  the  result  of  an  attempt  to  enforce  the  principles 
of  the  tirst  tax  law  adopted  by  the  General  Court  of  Massa- 
chusetts Bay,  whereby  it  was  enacted  : 

"That  every  Inhabitant  shall  Contribute  to  all  Charges 
both  in  Church  and  Common-wealth,  whereof  he  cloth  or  may 
receive  benefit.  And  every  such  Inhabitant  who  shall  not 
Contribute  proportionally  to  his  ability  to  all  common 
Charges,  both  Civil  and  Ecclesiastical,  shall  be  compelled 
thereunto,  by  Assessment  and  Distress,  to  be  levied  by  the 
Constable  or  other  officer  of  the  Town." 

The  Commonwealth  of  Massachusetts  embodied  this  rule  of 
taxation  in  the  Constitution  of  1780  in  granting  the  General 
Court  "power  and  authority  to  impose  and  levy  proportional 
and  reasonable  rates,  assessments,  and  taxes  upon  all  the  inhab- 
itants of  and  persons  resident,  and  estates  lying  in  said  Com- 
mon-wealth/' 

It  was  expressed  in  the  original  Constitution  of  Maine, 
Art.  IX,  Sec.  8,  as  follows  :  "All  taxes  upon  real  estate, 
assessed  by  authority  of  this  State,  shall  be  apportioned  and 
assessed  equally,  according  to  the  just  value  thereof."  Al- 
though personal  estate  was  not  mentioned  in  the  Constitution 
as  subject  to  equality  of  taxation,  the  first  tax  laws  enacted 
by  the  legislature  after  its  adoption  included  as  taxable  "all 
estates  real  and  personal"  not  by  law  exempted  ;  and  by  the 
seventeenth  amendment  of  the  Constitution,  adopted  in  1875, 
Sec.  8  of  Art.  IX,  equality  of  apportionment  and  assessment 
was  made  to  cover  personal  as  well  as  real  estate.  This  prin- 
ciple of  our  system  and  many  of  its  details  remain  as  in  1821. 
They  have  been  in  vogue  during  the  entire  life  of  the  State 
and  were  substantially  the  laws  of  our  ancestors  under  Mas- 
sachusetts from  the  beginning.  The  only  alteration*  have 
been  the  engrafting  upon  the  system,  from  time  to  lime,  of 
amendments  which  were  devised  to  meet  the  altered  con- 
ditions of  business  and  business  methods,  mainly  from  the 


6  REPORT    OF    TAX    COMMISSION. 

oreat  and  multiplying  interests  of  corporations  and  in  the 
attempt  to  bring  into  the  assessment  lists  the  rapidly  increas- 
ing, intangible  wealth  of  recent  years. 

While  we  have  not  been  unmindful  of  the  various  latter- 
day  theories  of  political  economists  relating  to  this  compli- 
cated subject,  and  confess  to  having  been  compelled  to 
acknowledge  the  logical  soundness  of  many  views  advanced, 
which  are  at  variance  with  the  conclusions  at  which  we  have 
arrived,  yet,  after  such  deliberation  and  study  of  the  per- 
plexing facts  involved  as  we  have  been  able  to  give  them,  we 
have  decided  that  it  were  better  to  err  upon  the  side  of  con- 
servatism, in  a  matter  so  far  reaching  and  important  as  this, 
and  bear  some  of  the  ills  of  a  time-honored  system,  "than  fly 
to  others  that  we  know  not  of."  "A  system,"  says  an  able 
writer  upon  the  Inequalities  of  Taxation  in  Massachusetts, 
"which  has  been  thus  developed  by  the  experience  of  an 
intelligent  and  practical  people  during  so  long  a  period,  and 
to  which  all  social  and  business  interests  have  become 
adapted,  cannot  safely  be  essentially  changed  except  by  a 
gradual  and  experimental  process. ' 

We  have  also  believed  it  inexpedient  to  recommend  any 
changes  of  the  law  which  cannot  be  made  without  changes  in 
the  Constitution.  Yet  we  have  not  been  so  conservative  as 
to  hesitate  to  recommend  a  radical  change  in  several  respects, 
where  an  antiquated  method,  unsatisfactory  in  results,  could 
be  readily  altered  to  a  method  which  in  many  states  has  been 
found  to  yield  excellent  results,  and  involving  no  constitu- 
tional objections.  In  other  words,  our  veneration  for  the  old 
has  not  prevented  our  acceptance  and  recommendation  of  sev- 
eral important  changes  in  our  system,  where  the  practical 
experience  of  other  states  has  shown  such  change  to  be  safe 
and  salutary.  The  principal  changes  of  this  kind  which  we 
have  embodied  in  the  proposed  act  herewith  submitted,  are 
the  provisions  for  a  permanent  board  of  State  Assessors,  and 
a  new  method  of  State  valuation  and  equalization.  Our 
present  system  lacks  a  head — a  central,  controlling  supervi- 
sion of  the  important  details  so  necessary  to  render  any 


REPORT    OF    TAX    COMMISSION. 

financial  system,  and  much  more  a  system  so  far  reaching 
and  vital  as  that  of  raising  revenue,  efficient.  This  we  have 
tried  to  remedy  in  the  bill  herewith. 

The  other  changes,  which  are  quite  numerous,  are  in  the 
nature  of  amendments  and  additions  to  the  present  system, 
so  as  uo  include  new  sources  of  revenue,  and  especially  by 
making  the  listing  of  property  more  peremptory  and  effective. 

The  tendency  of  the  theories  of  many  able  writers  upon  the 
tax  problem  is  towards  the  single  tax — a  tax  on  land  values. 
Indeed,  that  is  the  system  which  most  European  countries 
have  now  adopted,  relieving  all  money,  evidences  of  debt, 
and  in  son.e  instances  all  personal  property,  from  any  taxa- 
tion whatever.  In  view  ot  the  prominence  this  theory  is, 
assuming  in  this  country  at  present,  we  have  felt  it  our  duty 
to  examine  it,  although  mindful  of  the  instructions  of  the 
resolve  undtr  which  we  were  acting,  "to  provide  for  a  more 
equal,  just  aid  equitable  system  of  taxation  of  all  kinds  of 
property."  It  is  by  no  means  new.  Judge  Cooley,  whose 
legal  works  are  standard  in  the  courts  of  the  country,  writing 
in  1*76,  after  enumerating  several  principal  objections  to  the 
assessment  of  personal  property — that  it  must  necessarily  be 
inquisitorial  in  its  operation  ;  that  it  destroys  privacy  in  busi- 
n-ss  and  family  concerns;  induces  false  swearing;  leads  to 
faud  ;  often  discriminates  unjustly  between  residents  and 
ion-residents  ;  leads  to  double  taxation,  and  requires  a  larger 
force  and  more  frequent  assessments  than  would  otherwise  be 
necessary — says  :  "These  are  objections  which  every  one 
feels  and  appreciates  ;  others,  which  are  more  obscure,  need 
not  be  mentioned.  A  tax  on  land  is  not  open  to  these  objec- 
tions. Whenever  the  law  seeks  to  tax  land  and  personalty 
with  equality,  the  land  pays  much  the  greater  portion  of  the 
tax,  because  this  can  all  be  reached  and*  all  be  taxed;  no 
inquisitorial  proceedings  are  required  to  discover  it,  and  no 
frauds  or  evasions  can  conceal  it  from  view.  These  and 
other  reasons  have  led  some  political  economists  to  advocate 
the  omission  of  personalty  from  the  customary  taxation  by 


8  REPORT    OF    TAX    COMMISSION. 

value,  and  the  raising  of  the  ordinal y  state  revenue  by  tax 
laid  exclusively  on  land  and  a  few  other  objects  which,  like 
land,  are  open  to  constant  public  observation  and  inspection, 
and  in  respect  to  which  neither  would  harsh  sifting  processes 
be  required,  nor  evasions  be  practicable,  nor  frauds  incited. 
Such  a  tax,  it  is  claimed,  while  nominally  falling  upon  a  few, 
would  in  fact  be  diffused  through  the  whole  community,  and 
collected  from  all  by  being  added  to  the  price  of  \vhi\l  is  pro- 
duced and  distributed  by  the  classes  taxed,  just  as  we  have 
found  that  a  tax  upon  any  common  article  of  consumption  is 
paid  in  the  end  by  the  consumer,  and  is  no  more  burdensome 
to  the  dealer  who  nominally  pays  it  than  it  is  to/any  other 
member  of  the  community  of  consumers."  Coolej  on  Taxa- 
tion, (Jli.  /,  Page  29.  While  this  distinguished  guthor  does 
not  directly  indorse  the  single  tax  theory,  he  mates  it  appear 
very  alluring.  The  above  very  fairly  states  the  Substance  of 
the  Henry  George  theory,  excepting  that  the  distinguished 
Single  Tax  apostle  denies  that  the  tax  on  land  values  is  shifted 
to  the  consumer. 

President  Ely  of  Johns  Hopkins  University,  a  promiaent 
author  of  social  science  works,  in  a  supplemental  report  as 
one  of  the  Tax  Commissioners  of  Maryland,  while  not  approv- 
ing the  single  tax  theory,  yet  advocates  with  great  force u 
system  which  should  ' 'assess  to  the  last  dollar  of  its  true  valiu 
all  real  estate  held  for  speculative  purposes,"  and  would  have 
land  bear  by  far  the  greater  share  of  the  public  burden  and 
would  specially  exempt  altogether  from  assessment  mortgages, 
promissory  notes,  book  accounts,  simple  contract  debts  and 
other  private  securities,  and  he  lays  it  down  as  one  of  the 
fundamental  principles  of  his  system  that  as  few  things  as 
possible  should  be  taxed  and  that  "in  the  selection  of  objects 
for  taxation  great  care  should  be  taken  to  reduce  interfer- 
ence with  business  and  professional  pursuits  to  a  minimum." 

An  intelligent  advocate  of  the  single  tax  system  residing  in 
Knox  county,  in  a  letter  to  the  Commissioners  bespeaking  for 
the  system  the  attention  of  the  Commission,  gives  an  outline 
of  it  as  follows  : 


REPORT    OF    TAX    COMMISSION.  9 

"Taxes  on  the  products  of  labor  tend  to  restrict  produc- 
tion. To  one  who  has  given  that  study  which  you  have  done 
to  economic  questions,  it  is  unnecessary  to  argue  this  point. 
You  will,  I  am  sure,  accept  it  as  established  at  the  start. 
Therefore,  it  is  urged,  no  taxes  should  be  imposed  on  improve- 
ments or  commodities,  if  the  necessary  revenues  can  be  obtained 
without  resorting  to  that  source. 

"A  tax  on  land  values  does  not  restrict  production  or  le^en 
the  reward  of  the  users  of  land  as  such.  On  the  contrary, 
by  making  it  unprofitable  to  hold  land  out  of  use,  it  always 
operates  to  open  natural  opportunities  for  labor  and  capital, 
and  so  stimulates  production.  Therefore,  all  taxes  should  be 
levied  on  land  values,  and  none  on  the  fruits  of  industry  till 
the  full  rental  value  of  land  is  taken  for  the  purpose  and 
proves  insufficient  in  amount.  We  believe  that  it  would  be 
amply  Miffieient. 

"Every  man  is  entitled  to  the  full  results  of  his  own  labor 
or  enterprise  in  producing  wealth  ;  but  that  value  which 
attaches  to  land  by  reason  of  the  increased  competition  for 
the  privilege  of  using  it,  and  which  is  due  to  the  growth  of 
population  and  public  improvements,  justly  belongs  to  the 
whole  community.  Therefore,  the  public  should  take  by 
taxation  the  full  rental  value  of  land,  at  least  to  the  extent  of 
thft  revenue  needed  for  all  purposes  of  government  and  the 
cost  of  all  public  improvements. 

"Government  being  supported  by  the  ground  rent,  now 
going  as  'unearned  increment'  to  individuals,  and  industry 
being  relieved  from  taxation,  land  speculation  would  cease 
and  natural  opportunities  be  opened  to  labor.  Workmen 
unable  to  get  the  wages  they  should,  would  be  able  to  employ 
themselves  and  receive  the  full  product  of  their  labor,  and 
capital  would  enjoy  the  same  advantage,  being  relieved  of  the 
landlords'  tribute.  There  could  then  be  no  lack  of  employ- 
ment, and  wages  would  rise  to  their  natural  level,  the  full 
earnings  of  labor.  The  labor  problem  is,  how  shall  all  men 
willing  to  work  always  find  opportunities  to  do  so  and  thus 
produce  the  wealth  that  they  need?  The  single  tax  would, 
it  is  claimed,  solve  that  problem. 

"This  argument  is  presented  completely  and  most  ably  in 
the  great  work  of  Henry  George,  'Progress  and  Poverty,' 
41  nd  I  trust  you  will  not  permit  the  Commission  to  make  a 
report  to  legislature  without  giving  a  fair  and  unprejudiced 
consideration  to  the  fact  adduced  and  the  reasoning  contained 
in  that  book." 


TY  1 


10  REPORT    OF    TAX    COMMISSION. 

A  prominent  lawyer  in  Penobscot,  in  an  able  paper  read 
before  an  agricultural  society  two  years  since,  condemned  our 
laws  taxing  personal  property,  and  recommended  the  single 
land  tax  as  not  open  to  objection,  but  concluded  by  stating 
the  very  obvious  fact,  that  such  a  tax  "could  not  be  practi- 
cable, however,  unless  adopted  by  all  the  states."  The  era 
of  inter-state  uniformity  of  tax  laws  is  yet  exceedingly  remote,, 
and  so  is  the  millennium.  Another  great  hindrance  to  the 
adoption  of  "a  land-tax-only"  system  is  the  wide  disparity  of 
condition  between  the  great  business  centres  and  the  village 
and  rural  districts.  The  farmer  or  village  resident  whose 
property  "all  lies  out  of  doors"  cannot  be  induced  to  look 
with  favor  upon  a  system  which  would  tax  his  farm  to  its 
utmost  value,  while  the  money,  bank  stock,  piano,  tine  horses 
and  carriages  and  stock  in  trade  of  his  wealthier  neighbor 
were  passed  over  by  the  assessor.  We  cannot  believe  that 
the  time  has  yet  arrived  when  such  a  system  is  adapted  to  a 
state  like  ours,  and  we  are  very  positive  that  Maine  would 
refuse  to  lead  in  a  system  entirely  untried  by  any  state  in  the 
Union. 

In  spite  of  the  theories  of  the  many  brilliant  writers  on 
taxation  for  half  a  century,  and  notwithstanding  the  obnox- 
ious features  of  a  general  property  tax  have  long  been  held 
up  to  the  people  as  the  embodiment  of  all  that  is  iniquitous 
in  morals  and  destructive  of  business  prosperity,  no  state  has 
yet  turned  from  the  evil  of  its  ways  in  enforcing  its  revenues, 
in  part  at  least,  from  personal  property.  Indeed  this  method 
is  becoming  yearly  more  fixed  and  general.  It  has  come  to- 
be  recognized  as  the  American  system  as  distinguished  from 
the  systems  of  other  governments  where  the  objects  of  taxa- 
tion are  fewer  and  where  property  is  rated  at  its  income  value 
rather  than  at  its  selling  value.  We  believe  the  people  of 
this  State  do  not  desire  to  abandon  the  general  tax  system. 
In  view  of  that  fact,  our  object  and  effort  has  been  to  adapt 
the  laws  to  the  system.  If  a  large  portion  of  the  revenues 
must  necessarily  continue  to  be  raised  from  a  general  prop- 


REPORT    OF    TAX    COMMISSION.  11 

erty  tax,  the  laws  must  be  made  to  reach  the  property.  \Ve 
have  no  sympathy  with  the  idea  that  because  some  men  will 
defraud  the  revenue ;  because  they  will  conceal  property,, 
commit  perjury  and  resort  to  all  conceivable  trickery  to  pre- 
vent taxation,  therefore  the  whole  classes  of  property  which 
they  would  thus  hide  from  the  assessor  should  be-  exempted 
by  law. 

The  substance  of  the  complaint  in  Maine  is  that  personal 
property  is  not  reached  for  taxation  ;  that  those  who  have 
most  of  it  escape  their  just  portion  of  the  burdens  of  the 
government;  that  in  consequence,  real  estate  and  tangible 
personal  property,  such  as  the  farmer  and  the  village  real 
property  owners  possess,  bear  an  undue  burden.  If  this  com- 
plaint is  just,  then  the  remedy  is  evident,  make  a  law  which 
shall  bring  the  personal  property  to  the  attention  of  the  asses- 
sors and  oblige  them  to  apportion  and  assess  it,  as  the  Con- 
stitution requires,  "equally,  according  to  the  just  value 
thereof."  This  complaint  is  unquestionably  well  founded. 
It  is  a  notorious  fact  proven  by  all  revenue  statistics,  that  not 
only  in  this  State,  but  in  all  the  states,  the  percentage  of 
revenue  from  personal  property,  relative  to  real,  is  growing 
less.  Indeed,  it  seems  well  understood  and  believed  that 
nothing  more  is  necessary  to  be  done  in  the  way  of  statute 
remedies  than  to  provide  some  means  to  make  personal  bear 
its  equal  burden  with  real  property.  In  that  direction  all 
efforts  for  improvement  in  the  laws  of  the  several  states  are 
tending.  It  is  in  that  line  that  we  have  wrought  out  the 
results  we  have  reached. 

If  the  tax  valuations  of  personal  property  of  the  whole 
country  were  to  be  consulted  for  the  purpose  of  ascertaining 
its  financial  condition,  it  would  be  found  to  be  hopelessly  speed- 
ing towards  bankruptcy.  From  1870  tolS80,  according  to  the 
census  returns,  the  assessed  valuation  of  the  personal  property 
of  all  the  states  decreased  from  $5,111 ,554,000,  to  $3,866,227,- 
000,  while  the  assessed  value  of  real  estate  increased  more  than 
tive  billions.  It  was  seen  by  these  figures  that  new  methods 


1'2  REPORT    OF    TAX    COMMISSION. 

must  be  resorted  to  by  state  legislatures  to  compel  personal 
property,  especially  intangible  kinds,  to  bear  a  more  equal 
share  of  the  burdens.  The  tax  problem  at  once  became  a 
more  important  one  than  ever  before.  State  pride  was 
touched.  Tax  commissions  were  appointed  in  many  states 
4ind  vigorous  efforts  made  to  prevent  such  a  fallacious  repre- 
sentation of  their  resources.  More  rigorous  laws  were 
enacted  to  compel  disclosures  of  property  and  to  hold  asses- 
sors to  their  duties.  Among  the  states  which  have  adopted 
radical  changes  in  their  assessment  laws  since  1880  are  New 
York,  Massachusetts,  Maryland,  Connecticut,  Vermont,  Ohio, 
Virginia,  Wisconsin,  Michigan,  North  Carolina  and  Pennsyl- 
vania. 

THE    REMEDY. 

It  is  evident,  then,  that  whatever  remedies  law  can  supply, 
wider  our  system  of  general  property  taxation,  must  be  in 
the  direction  of  equality  of  taxation.  That  all  taxable  prop- 
erty is  not  equally  assessed  under  our  present  laws,  and  that 
land  and  houses  and  cattle,  visible  and  tangible  property,  are 
bearing  an  unequal  share  of  the  public  burdens ;  and  that 
farmers  especially,  as  a  prominent  stock  raiser  concisely  puts 
it,  are  "drawing  at  the  short  end  of  the  yoke,"  all  concede. 
That  this  complaint  of  the  escape  of  much  personal  estate 
from  taxation,  and  the  demand  for  a  remedy,  has  not  been  a 
mere  partisan  cry,  but  a  well  founded  desire  for  a  much 
needed  reform,  is  apparent  from  the  following  extracts  from 
the  recommendations  of  our  governors,  of  both  parties,  dur- 
ing the  last  sixteen  years,  in  their  messages  to  the  legisla- 
ture : 

\_Gov.  Dingley,  1874.] 

"I  most  earnestly  urge  that  you  should  consider  whether 
it  is  not  advisable  to  devise  some  method  other  than  direct 
taxation  to  secure  a  part  of  the  revenue  required  for  State 
expenditures  ;  so  that  the  rate  of  taxation  may  be  still  further 
reduced.  Pennsylvania  finds  no  difficulty  in  securing  suffi- 
cient receipts  from  indirect  taxation  to  support  the  state 
government.  A  large  share  of  the  state  expenditures  of 


REPORT    OF    TAX    COMMISSION.  1£ 

Massachusetts  is  met  by  the  proceeds  of  a  state  tax  upon  the 
valuation  of  the  corporate  stock  of  railroad  and  other  corpo- 
rations over  and  above  municipal  taxation  for  real  estate  and 
machinery  ;  and  upon  the  business  of  fire  and  life  insurance 
companies.  Without  indicating  more  in  detail  what  sources- 
of  revenue  may  be  made  available  to  this  State,  I  desire  to- 
call  your  attention  to  the  subject,  and  to  suggest  a  careful 
inquiry  and  investigation,  with  a  view  of  devising  methods  of 
lifting  some  portion  of  the  burden  of  taxation  from  real 
estate.  Such  a  policy  would  give  needed  encouragement  to 
our  agricultural  interests,  and  promote  the  development  of 
the  resources  of  the  State." 

\_Gov.  Dingley,  1.875.] 

"Without  such  a  radical  reformation  as  will  lead  all  me» 
to  be  honest  and  truthful  in  rendering  statements  of  their 
property,  it  is  of  course  impossible  to  devise  any  system  of 
taxation  which  will  be  absolutely  equal  ;  as  capital  which  is 
represented  by  stocks,  bonds,  loans  and  currency,  can. 
not  be  reached  by  the  assessor  as  readily  as  that  invested  in- 
farms,  houses,  stores,  mills,  work-shops,  ships  and  other  vis- 
ible property.  At  the  same  time,  this  liability  to  inequality 
should  be  corrected  so  far  as  it  is  possible.  So  far  as  capital 
is  invested,  directly  or  indirectly,  in  banking,  railroad,  tele- 
graph, express  and  insurance  business,  it  may  and  should  be 
reached.  The  last  legislature  inaugurated  steps  in  the  right 
direction  with  reference  to  a  part  of  these  interests.  I  earn- 
estly hope  that  you  will  continue  to  press  forward  measures- 
looking  to  such  a  system  of  taxation  as  will  tend  to  equalize 
the  public  burdens." 

\_Gov.  Garcelon,  1879.] 

"The  average  rate  of  taxation  upon  real  estate  and  farm 
property  for  a  series  of  years  has  not  been  less  than  one  and 
one-half  per  cent.  During  the  same  time  a  very  large  pro- 
portion of  the  accumulated  capital  of  the  State  has  been 
virtually  exempt  from  all  assessments.  Probably  more  than 
one  hundred  millions  of  the  accumulated  wealth  of  this  State 
is  invested  in  mortgages,  railroad,  municipal,  county  and 
State  bonds,  or  deposited  in  savings  banks,  and  it  would 
seem  but  an  act  of  justice  to  enact  such  laws,  if  practicable,, 
as  will  compel  the  holders  of  such  property  to  bear  their  just 
proportion  of  the  public  burdens." 


14  REPORT    OF    TAX    COMMISSION. 


\_Gov.  Davis,  1880.] 

"The  burdens  of  taxation  press  heavily  upon  the  people. 
Every  species  of  property,  whether  owned  by  individuals  or 
corporations,  should  bear  its  part  of  the  public  burden.  If 
there  is  any  property  in  the  State  not  yet  reached  by  the  tax 
gatherer,  or  which  does  not  bear  its  proportionate  part,  it  is 
your  province  to  ascertain  that  fact,  and  make  such  changes 
in  the  laws  as  may  be  necessary." 

\_Gov.  Planted,  1881.] 

"Too  large  a  proportion  of  the  public  burden  falls  upon  real 
estate.  This  is  especially  true  of  all  farm  property.  The  prop- 
erty of  the  farmer  is  all  visible  and  exposed  to  assessment. 

******* 

It  is  not  in  the  economical  expenditure  of  the  public  revenue, 
so  much  as  in  seeking  new  sources  of  revenues  and  in  equal- 
izing the  burdens  of  taxation,  that  you  will  be  able  to  com- 
pass such  reforms  and  such  relief  as  will  gladden  the  hearts 
and  cheer  the  hopes  of  our  people.  The  public  burdens  are 
unequally  burne.  When  all  the  property  in  the  State  is 
reached  and  taxed  as  real  estate  and  all  property  of  farmers 
"according  to  the  just  value  thereof,"  the  rate  of  taxation 
will  be  reduced  one-half.  Then  will  taxation  fall  lightly  and 
be  borne  cheerfully,  because  it  will  fall  equally  upon  all. 
True  it  is,  that  absolute  equality  in  taxation  can  never  be 
attained.  A  disproportionate  share  of  the  public  burdens  will 
always  be  thrown  on  certain  kinds  of  property  because  they 
are  visible  and  tangible.  The  best  system  to  be  sought  is 
that  which,  in  its  practical  operation,  approximates  nearest 
to  equality." 

\_Gov.  Robie,  18&3.] 

"The  legislature  of  1874  inaugurated  a  new  system  of  tax- 
ation, seeking  to  equalize  it  by  removing  a  part  of  the  burden 
from  the  productive  industries  of  the  State  and  transferring 
it  to  capital  invested  in  railroad,  telegraph,  express  and 
insurance  companies,  savings  banks,  and  like  corporations 
and  business.  By  repeated  changes  of  law,  a  system  of  tax- 
ation has  been  legalized  and  sustained  by  the  constitutional 
authorities  of  the  State,  which  has  brought  a  new  revenue 
into  our  treasury,  and  thereby  lightened  the  burden  on  visi- 
ble property. 

"The  State  of  Vermont  has  already  provided,  by  a  tax  on 
these  several  interests,  a  sum  sufficient  for  all  the  State 


REPORT    OF    TAX    COMMISSION.  15 

•expenditures  without  assessing  a  single  dollar  on  the  several 
towns  and  cities. 

"I  would  suggest  that  the  legislature  investigate  the  pres- 
ent system  of  taxation,  as  far  as  practicable,  that  measures 
may  he  devised  to  provide  that  all  kinds  of  property  and 
interests  be  reached,  so  that,  in  a  just  way,  public  burdens 
may  be  equalized." 

\_Gov.  Bodwell,  1887.] 

"It  may  be  stated  as  a  maxim  that  there  is  no  expenditure 
for  which  the  citizen  gets  so  much  in  return  as  for  the  amount 
he  devotes  to  paying  taxes,  and  yet  there  is  no  subject  upon 
which  people  are  more  justly  sensitive  than  that  the  taxes  be 
equal.  If  all  communities,  and  all  the  citizens  of  each  com- 
munity, paid  in  equal  and  proper  proportion,  there  would  be 
no  complaint  among  the  people.  The  grievance  arises,  in 
large  part,  from  the  inequality  of  taxation,  and  the  inequal- 
ity arises,  in  large  part,  from  the  errors  in  valuation — errors 
in  many  cases  innocently  made,  no  doubt,  but  still  working 
.hardship  in  many  ways." 

\_Gov.  Burleigh,  1889.] 

"Our  own  State  valuation  finds  too  large  a  proportion  of 
our  property  in  the  farms  of  the  State  and  makes  the  farmers 
pay  an  undue  share  of  the  general  taxes.  On  the  other  hand 
the  valuation  of  the  United  States  Census  takes  cognizance 
of  the  less  tangible  but  more  profitable  investments  which 
escape  their  fair  share  of  the  common  burdens.  If  there 
should  be  a  closer  inquiry  into  other  forms  of  property  than 
the  real  estate,  taxation  could  be  more  equitably  distributed 
and  more  exact  justice  could  be  done  to  all  citizens  alike — 
which  is  indeed  the  highest  duty  of  a  state  government." 


THE    LISTING    SYSTEM. 

A  law  requiring  the  listing  of  property  by  the  tax  payer 
tinder  oath,  and  generally  referred  to  as  the  "Vermont  sys- 
tem," appears  to  be  considered  in  this  State  as  a  radical  inno- 
vation, something  peculiar  to  Vermont;  but  the  fact  is,  such 
a  system  prevails  in  a  large  number  of  the  states.  Some 
features  of  the  Vermont  tax  laws  are  new,  but  its  central 
principle,  that  of  requiring  the  tax  payer  to  render  to  the 


UNIVERSITY 


16  REPORT    OF    TAX    COMMISSION. 

assessors  an  inventory  on  oath  of  all  his  taxable  property,  is 
almost  as  old  as  the  tax  systems  of  the  country.  That  it 
may  appear  how  general  is  this  requirement,  we  subjoin  a 
reference  to  the  assessment  laws  of  most  of  the  states. 

MASSACHUSETTS — In  this  state  the  assessors  are  required  to 
notify  the  inhabitants  to  bring  in  lists  of  their  taxable  polls 
and  personal  estate,  and  may  or  may  not  require  real  estate 
to  be  included  in  the  lists,  and  in  all  cases  shall  require  per- 
sons bringing  in  lists  to  make  oath  to  the  same,  and  a  false 
list  subjects  the  lister  to  a  line  of  not  exceeding  $1,000,  or 
imprisonment  not  more  than  one  year.  The  valuation  is 
made  as  of  the  tirst  day  of  May  of  each  year. 

CONNECTICUT — Assessors  mu*t  require  residents  to  bring 
in  lists  of  property  owned  by  them  on  the  first  day  of  each 
October,  and  to  make  oath  that  said  lists  are  true  and  that  the 
lister  has  not  conveyed,  transferred  nor  concealed  any  prop- 
erty to  evade  taxation.  Neglect  or  refusal  to  present  and 
swear  to  such  lists  subjects  the  tax  payer  to  an  addition  of  ten 
per  cent  to  such  valuation  as  the  assessors  may  prepare  from 
the  best  of  their  information  and  belief. 

NEW  HAMPSHIRE — Blank  inventories  are  furnished  by  the 
Secretary  of  State  to  inhabitants  through  the  assessors  in 
proper  form  and  to  contain  suitable  interrogatories  to  fully 
meet  the  requirements  of  law,  so  arranged  and  formulated  as 
to  require  under  oath  full  information  of  the  person  or  cor- 
poration to  be  taxed,  of  the  classes  in  gross  and  the  amount 
thereof  of  each  class  of  his  real  and  personal  property  and  the 
value,  by  such  classes,  of  his  personal  property  liable  to  be 
taxed,  and  such  further  information  as  will  enable  the  assessors 
to  assess  such  property  at  its  true  value.  Assessors  must 
make  up  lists  of  property  for  all  who  fail  or  refuse  to  furnish 
or  swear  to  said  lists,  and  then  assess  such  delinquent  four 
times  as  much  as  otherwise  would  have  been  taxable  to 
such  person.  False  oath  declared  perjury  and  punishable 
accordingly. 


REPORT    OF   TAX    COMMISSION.  17 

OHIO — Assessors  must  furnish  all  residents  with  blank  lists 
to  l)e  tilled  out  in  detail  with  an  inventory  of  their  taxable 
property,  sworn  to  and  returned  to  the  assessors  within  ten 
da  vs.  The  statements  required  are  very  minute,  must  include 
both  real  and  personal  property  with  value,  but  the  assessors 
are  not  bound  by  such  value.  Persons  claiming  not  to  own 
property  are  requested  to  make  oath  to  that  effect. 

ILLINOIS — By  an  amendment  in  1879,  a  list  of  property  in 
detail  must  be  returned  to  the  assessors  en  oath  by  the  tax 
payer.  Refusal  or  neglect  to  return  such  list  on  oath  or  the 
return  of  a  false  list  incurs  a  doomage  of  fifty  per  cent  of 
entire  valuation.  Any  person  who  shall  refuse,  neglect  or 
fail  to  return  required  list  is  guilty  of  misdemeanor  and  shall 
be  fined  not  exceeding  $200.  Assessors  may  compel  the 
attendance  of  any  person  for  examination  on  oath,  whom  they 
suppose  to  have  knowledge  of  amount  and  value  of  the  prop- 
erty under  consideration. 

PENNSYLVANIA — Assessors  must  make  up  the  lists  of  per- 
sons and  property  from  the  best  information  obtainable.  Xo 
oath  is  required  of  the  tax  payer,  but  the  assessor  is  subject 
to  fine  and  imprisonment  for  intentionally  undervaluing  or 
omitting  to  value  and  assess  any  taxable  property.  This  is 
for  local  assessments.  By  act  of  1889,  all  persons  holding 
moneys,  notes,  mortgages,  accounts  bearing  interest,  stocks, 
bonds,  <£c.,  must  return  on  oath  to  assessors  a  list  of  such 
property  to  be  taxed  for  the  state  three  mills  on  the  dollar. 

XEW  YORK — The  method  of  assessment  is  the  same  as  in 
Pennsylvania.  No  list  or  oath  is  required  of  the  tax  payer. 

MARYLAND — Instead  of  requiring  the  tax  payer  to  list 
or  disclose  on  oath  the  amount  and  value  of  his  property  as 
in  most  of  the  states  is  required,  Maryland  takes  the  opposite 
and,  perhaps  equally  effective  method,  of  requiring  the  assess- 
ors to  hunt  up  taxable  property  with  the  utmost  diligence, 
proceeding  on  the  principle  that  every  man  is  to  be  taxed  for 
2 


18  REPORT    OF    TAX    COMMISSION. 

all  he  had  the  year  before  and  as  much  more  as  the  assessors 
can  in  the  meantime  dig  out. 

The  assessment  is  really  made  by  the  County  Commis- 
sioners, who  assess  the  tax  according  to  the  last  year's  valua- 
tion, with  such  additions  as  the  assessors  have  since  returned. 
That  is  to  say,  when  a  man  is  once  assessed  tor  any  kind  of 
property,  he  is  forever  after  taxed  for  the  same  unless  he 
takes  pains  to  satisfy  the  County  Commissioners  that  he  has 
sold  or  otherwise  disposed  of  the  same,  and  at  the  same  time 
must  satisfactorily  explain  what  has  become  of  the  proceeds 
of  such  sale  and  otherwise  make  full  disclosure  of  his 
property. 

By  this  method  of  continually  hunting  up  all  acquisitions 
of  property  and,  at  the  same  time,  continuing  to  tax  all  prop- 
erty ever  owned  by  the  tax  payer  until  he  volunteers  a  sworn 
statement,  Maryland  without  requiring  a  sworn  list  virtually 
drives  the  tax  payer  to  submit  to  examination  under  oath  to 
protect  himself. 

Registers  of  Wills,  Clerk  of  Courts  and  Commissioner  of 
the  Land  Office  are  required  to  make  return  to  the  County 
Commissioners  of  the  several  counties,  giving  information  of 
taxable  property  found  on  the  records  of  their  respective 
offices. 

IOWA — Assessors  must  require  a  list  from  the  tax  payer  of 
all  his  property  and  shall  require  him  to  swear  to  it.  In 
default  of  such  sworn  list,  it  IP  mandatory  upon  the  assessors 
to  fix  the  valuation  of  such  person's 'property,  from  the  best 
information  obtainable,  and  then  double  it. 

MICHIGAN — The  assessors  are  not  obliged  to  require  sworn 
lists  from  tax  payers,  but  may  do  so,  and  may  summon  and 
examine  any  person  on  oath  whom  they  m«iy  believe  has 
information  of  the  possessions  of  the  delinquent. 

WISCONSIN — Assessors  must  require  lists  on  oath  from  the 
tax  payer,  and  neglect  to  require  it  subjects  the  assessor  to  a 
penalty  of  from  $100  to  $300.  A  false  statement  in  list  sub- 


REPORT    OF    TAX    COMMISSION.  19 

jects  the  lister  to  forfeiture  often  dollars  in  every  hundred  or 
fraction  of  a  hundred  dollars  withheld  from  his  list. 

VERMONT — Blanks  for  inventories  of  taxable  property  are 
prepared  by  the  Secretary  of  State  and  distributed  by  the 
listers  and  clerks  of  towns  to  the  in  habitants  and  to  non-resi- 
dent tax  payers  by  mail.  The  blanks  contain  questions 
calling  for  a  minute  detail  of  the  taxable  property  of  the 
tax  payer,  real  and  personal  and  debts  payable  and  receiv- 
able and  the  inventory  must  be  signed,  sworn  to  and  returned 
to  the  town  listers.  In  case  ot  neglect  or  refusal  to  return 
sworn  list,  the  listers  are  required  to  ascertain  from  the 
best  information  obtainable  the  amount  and  value  of  the 
property  which  should  have  been  listed  and  then  to  double 
the  value  for  taxation,  and  the  delinquent  has  no  appeal. 
False  oath  to  list  is  perjury  and  punished^  accordingly.  If  a 
lister  accepts  a  Ii?t  of  property  not  properly  tilled  out  or 
sworn  to,  or  lor  neglect  to  appraise  each  item,  he  is  liable  to 
a  tine  of  $200  for  the  town. 

KANSAS — Every  person  is  required  to  return  list  of  taxable 
property  and  value  it,  on  blanks  furnished  by  assessors. 
Persons  claiming  not  to  own  taxable  property  must  so  state 
on  the  list  and  return  it  under  oath  to  the  assessors.  Per- 
sons returning  lists  of  property  need  not  verity  it  by  oath 
unless  so  required  by  the  assessors.  The  assessors  are  not 
bound  by  the  lists. 

MINNESOTA — A  list  must  be  returned  to  the  assessors,  giv- 
ing a  full  and  detailed  statement  of  property  on  oath.  Blanks 
provided  by  state.  No  penalty  for  neglect  to  return  such  list 
is  provided,  but  the  assessors  may  make  up  the  valuation  of 
the  delinquent  from  their  best  information. 

CALIFORNIA — Assessors  must  exact  from  every  tax  pnver  a 
full  and  detailed  list  of  property  on  oath  in  writing.  A>.-^s- 
ors  may  summon  and  examine  witnesses  in  regard  to  the 
statements  filed  by  any  person.  If  none  returned,  the  assess- 
ors may  make  valuation  from  their  best  information  and 


20  REPORT    OF    TAX    COMMISSION. 

belief,  and  no  appeal  is  allowed.  Property  concealed  or  mis- 
represented by  owner  to  avoid  taxation,  on  discovery  must 
be  assessed  at  not  exceeding  ten  times  its  real  value,  and 
no  appeal. 

NEW  JERSEY — Lists  required  in  detail  of  ratable  property. 
Neglect  or  false  return  subjects  to  a  double  valuation,  with 
no  remedy  except  on  proof  before  County  Commissioners 
that  there  was  no  culpable  neglect  or  fraud. 

RHODE  ISLAND— List  must  be  returned  on  oath,  but  the 
only  penalty  for  neglect  or  refusal  is  forfeiture  of  all  right  of 
appeal  or  other  remedy  if  overtaxed. 

VIRGINIA — List  must  be  returned  on  oath  under  penalty  of 
from  $30  to  $1,000  for  neglect  or  refusal  to  make  sworn 
return.  No  assessor  shall  receive  a  list  not  sworn  to,  under 
penalty  of  $500.  By  act  of  1887,  it  is  provided  that  in  case 
of  failure  to  return  on  oath  all  bonds,  notes  or  other  evi- 
dences of  debt  by  any  person,  bank  or  firm,  they  shall  not 
be  recoverable  in  any  action  at  law  or  in  equity  in  the  courts 
of  the  state,  until  tax  is  paid,  and  50  per  cent,  per  annum 
from  the  time  the  tax  accrued, 

WEST  VIRGINIA — List  must  be  returned  on  oath,  under 
penalty,  for  neglect  or  refusal,  of  from  $10  to  $100,  and  a 
forfeiture  of  tive  per  cent,  of  the  valuation  of  all  property 
omitted,  to  go  to  the  informer. 

OREGON — List  must  be  made  on  oath,  under  penalty,  for 
neglect,  of  $20  fine. 

MISSOURI — List  must  be  returned  on  oath.  Neglect  or 
refusal  subjects  the  tax  payer  to  a  fine  of  not  exceeding 
$1,000,  and  forfeiture  of  right  of  appeal. 

GEORGIA — A  constitutional  provision  in  this  state  makes  a 
tax  defaulter  ineligible  to  a  seat  in  the  legislature.  No  oath 
is  required  to  list. 

KENTUCKY — List  must  be  returned  on  oath.  Neglect  or 
refusal  incurs  a  fine  of  $100  and  treble  taxation.  County 
Attorney  must  enforce  the  fine. 


REPORT    OF    TAX    COMMISSION.  21 

SOUTH  CAROLINA — A  list  on  oath  is  required  with  very 
minute  statement.  Refusal  to  swear  is  contempt,  punishable 
by  imprisonment.  Property  omitted  from  list  must  be  added 
with  50  per  cent,  additional. 

ARKANSAS — A  very  detailed  statement  is  required  of  the 
tax  payer  on  oath  or  affirmation.  Wilful  omission  is  made  a 
misdemeanor,  punishable  with  a  fine  of  not  exceeding  $100, 
and  imprisonment  not  more  than  three  months.  It  is  made 
the  duty  of  the  assessors  and  prosecuting  officers  to  bring 
offenders  against  these  provisions  to  trial.  The  assessors  are 
bound  under  penalty  of  a  fine  not  exceeding  $50  for  each 
offence,  to  require  sworn  inventories  of  taxable  property. 

That  this  plan  of  requiring  sworn  inventories  of  taxable 
property  is  open  to  the  objection  of  being  inquisitorial  is 
undeniable,  but  it  is  difficult  to  conceive  of  any  method  of 
assessment  of  general  property  that  is  not  more  or  less  inquis- 
itorial. It  is  doubtless  much  more  agreeable  to  have  no 
questions  asked — no  attempt  made  by  the  assessors  to  find 
one's  property  for  entry  on  his  lists — but  that  method  has 
been  often  tried  with  very  unsatisfactory  results.  Indeed, 
it  is  on  account  of  its  insufficiency  that  the  legislature  is 
trying,  through  this  Commission,  to  devise  a  better  one. 
That  the  state  has  a  right  to  demand  this  scrutiny  into  the 
affairs  of  the  people,  if  just  and  equal  taxation  require  it, 
there  can  be  no  question  ;  yet,  there  should  be  no  needless 
exposure  of  private  business  and  property  to  the  public. 
We  have  made  provision  for  protection  of  this  kind  in  the 
bill.  The  inventories  returned  by  the  tax  payers  are  not 
open  to  public  inspection,  and  the  assessors  must  not  disclose 
their  contents,  being  under  penalties  if  they  do,  excepting  to 
a  few  designated  officers  if  necessary  in  the  prosecution  of 
violations  of  the  act. 

This  is  not  a  new  feature,  even  in  Maine.  The  law  in  all 
cases  directs  that  the  assessors  may  require  the  lister  to  make 
oath,  and  it  imposes  a  penalty  for  the  non-production  of  an 
inventory,  by  depriving  the  tax  payer  of  the  right  of  appeal 


22  REPORT    OF    TAX    COMMISSION. 

if  unjustly  taxed  or  over-assessed.  If  these  provisions  are 
just  and  salutary  in  their  weakness,  we  believe  they  will  prove 
much  more  so  by  being  made  strong  and  mandatory.  The 
proposed  law  is  not,  therefore,  an  innovation,  but  the  making 
prominent  and  potent  of  measures  which  our  tax  laws  have 
always  contained  in  a  diluted  and  inefficient  form.  The  bit- 
terest antagonists  of  such  required  returns  of  property  are 
invariably  those  who  wish  to  avoid  a  fair  and  full  assessment 
of  their  property  ;  who,  having  long  escaped  paying  their 
just  share  of  taxes,  desire  to  perpetuate  their  exemptions,  and 
shift  the  burden  they  can  easily  bear  upon  the  shoulders  of 
their  neighbors  whose  property  may  be  open  and  visible  to 
the  assessor.  From  such  objectors  is  sure  to  come  the 
attempt  to  arouse  public  sentiment  against  such  a  law  by 
alleging  that  it  is  inquisitorial,  and  an  obnoxious  intermeddling 
with  private  affairs.  Let  those  whose  property  is  in  land, 
houses,  farms,  stock  and  other  forms  of  visible  property,  see 
to  it  that  those  who  unfairly  escape,  may,  by  the  only  fea- 
sible mode  which  law  can  provide  under  our  Constitution,  be 
compelled  to  bear  their  own  just  portion  of  the  tax  load. 

RESULTS    OF    THE    LISTING    SYSTEM. 

We  have  endeavored  to  find  what  has  been  the  result  else- 
where of  the  practical  application  of  this  method  of  getting 
at  property  for  the  purpose  of  taxation.  Theory  is  one  thing  ; 
practical  tests  are  often  apt  to  show  quite  another  thing ; 
especially  is  this  true  of  theory  and  practice  in  the  matter  of 
taxation.  We  have,  therefore,  selected  three  states  in  which 
the  "inquisitorial"  method  is  most  specific  and  searching,  and 
three  states  in  which  there  is  little  or  no  attempt  to  hold  the 
tax  payers  to  any  accountability  in  respect  to  disclosing  their 
property  to  the  assessors*.  If  in  the  one  case  it  shall  be  found 
that  personal  and  intangible  property  is  made  to  bear  with 
more  equality  its  share  of  the  public  burdens,  as  compared 
with  real  and  tangible  property,  than  in  the  other  case,  it  will 
be  an  argument  of  weight  in  favor  of  the  method  under  which 
such  a  result  is  produced. 


REPORT    OF    TAX    COMMISSION.  ~2 

The  three  states  having  the  "listing-under-oath"  method 
which  we  will  select  are  Ohio,  New  Hampshire  and  Vermont, 
and  the  three  having  most  nearly  an  opposite  method  :  New 
York,  Michigan  and  Maryland.* 

The  following  table  shows  the  last  valuations  of  real  and 
personal  estate  in  the  states  named,  for  purposes  of  taxation, 
the  aggregates  and  the  percentage  of  the  personal  to  the 
whole  valuation  : 

Per  cent  of 
Real.  Personal.  Aggregate.  Personal. 

Ohio,                 .$1,173,100,705  8515,569,463  81,688,676,168  30  5 

N.  Hampshire,      120,6-29,345  61,983,716  182,613,061  33.1> 

Vermont,                110.385,75*  49,8^0.623  160.266.376  31.1 

New  York,        3.213,171,  201  354,258.556  3,567,429,757  9.6 

Michigan.               432.861,884  84,804,475  517.666.359  16.4 

Maryland.               368,442.913  128.804,762  497.307,675  25  S 


NEW    HAMPSHIRE. 

The  assessment  law  of  New  Hampshire  as  amended  by  the 
legislature  in  1879,  requires  inventories  on  oath  from  all  tax 
payers  tilled  out  in  detail,  and  a  wilful  neglect  or  refusal  sub- 
jects the  delinquent  to  a  doomage  of  four  times  the  amount 
he  would  otherwise  be  legally  taxed.  False  swearing  to  list 
is  made  perjury.  The  penalty  is  regarded  in  the  state  as  too 
severe  and  serves  often  to  defeat  its  object.  Assessors  can- 
not be  made  to  assess  a  full  legal  tax  on  a  person's  property 
and  then  quadruple  it.  For  that  reason  the  law  fails  to 
accomplish  what  it  might  otherwise  accomplish. 

We  visited  Portsmouth  and  Concord  to  investigate  the 
practical  workings  of  the  law.  The  fact  that  the  personal 
property  amounts  to  thirty-four  per  cent  ot  the  aggregate 
valuation  of  the  state,  exclusive  of  deposits  in  the  savings 
banks,  is  pretty  conclusive  evidence  as  to  the  effectiveness  of 

*XOTE — The  Maryland  Tax  Commission  has  recommended  a  law  requiring  lists  to  be  re- 
turned by  tax  payers  subject  to  examination  on  oath  and  penalty  of  imprisonment  not  less 
than  one  nor  more  than  ten  years  for  false  returns. 

In  Michigan  a  new  law  was  enacted  at  the  recent  session  of  its  legislature,  making  more 
exacting  provision  for  return  of  lists  on  oath  and  providing  that,  in  case  ol  failure  by  a  tax 
payer  to  make  such  return  of  his  property,  the  supervisors  may  examine  "any  other  person  or 
persdu>"  as  to  the  value  of  the  delinquent's  property.  This  would  appear  to  be  a  step  back- 
ward  to  the  ancient  Rhode  Island  system  of  getting  one's  valuation  from  his  neighbors. 


24  REPORT    OF    TAX    COMMISSION. 

the  system.  From  Hon.  John  M.  Hill  of  Concord,  Chairman  of 
the  State  Board  of  Equalization,  we  gained  much  information 
about  the  practical  results  of  the  inventory  method  of  assess- 
ment. He  assured  us  that  its  operation  was  most  satisfac- 
tory and  had  brought  to  the  notice  of  the  assessors  much  per- 
sonal property,  especially  bonds,  notes,  cash  and  other  forms 
of  intangible  assets  that  had  before  escaped.  The  money  on 
hand  and  at  interest  in  1889  which  was  inventoried  amounted 
to  $7,920,348.  And  this  is  in  spite  of  the  fact  stated  in  the 
report  of  the  Equalizing  Board  in  1887,  as  follows  : 

"The  commissioners  having  been  requested  by  the  Board 
to  ascertain  how  generally  individual  inventories  were  sworn 
to,  report  that  they  generally  were  sworn  to,  yet,  in  one  large 
county  in  three  towns  only  was  it  done,  and,  in  another  large 
county,  only  in  about  half  of  the  towns." 

This  failure  to  make  oath  was  believed  by  the  officials 
whom  we  consulted,  to  be  due  to  the  neglect  of  assessors  in 
these  towns  to  enforce  the  quadruple  doomage.  It  was 
believed  if  the  penalty  were  but  half  as  severe,  the  law  would 
be  better  enforced.  The  law  is  handicapped  by  its  severity, 
yet  its  general  result  is  beneficial. 


,1 


THE    VERMONT    LISTING    LAW. 

The  present  tax  law  of  Vermont  was  enacted  in  1880. 
The  last  assessment  of  real  estate  before  the  law  was  passed 
was  in  1876.  It  is  interesting  to  compare  with  this  the  vari- 
ous state  valuations  since  this  law,  known  as  the  grand  list 
law,  has  been  in  force. 

In  1876  the  total  assessed  valuation  of  real  and  personal 
property  of  the  state  was  $99,717,603. 

In  1889  it  was  $160,847,357,  an  increase  of  $61,029,754. 

The  personal  property  of  the  state  in  1880,  just  before  the 
passage  of  the  grand  list  law,  was  assessed  at  $15,370,152 
and  the  real  estate  $71,436,623,  total  $86,806.775,  the  per- 
sonal property  being  less  than  17  per  cent  of  the  aggregate. 
In  1886,  the  valuation  of  personal  property  had  arisen  to 
$49,927,597  or  more  than  200  per  cent  increase  above  the 


REPORT    OF    TAX    COMMISSION*.  /  25 

valuation  of  1876,  while  the  real  estate  had  increased  but  38 


per 

A  correspondent  writing  from  St.  Albans,  giving  a  detailed 
statement  of  the  finances  of  Vermont,  says:  "A  comparison 
of  the  assessed  valuation  of  real  and  personal  property  in 
1876  and  1889  in  this  state  shows  a  very  large  increase  dur- 
ing this  period.  It  should  not  be  forgotten  that  the  additions 
to  the  grand  list  since  1876,  by  new  buildings,  improved  real 
estate  and  industrial  development  have  been  very  extensive. 
The  grand  list  was  also  largely  increased  by  the  new  grand 
list  law  of  1880,  which  resulted  in  the  assessment  of  a  large 
amount  of  personal  property  that  had  hitherto  escaped  taxa- 
tion." 

This  statement  we  found  fully  corroborated  by  the  testimony 
of  state  officials  and  others  in  Montpelier  and  Burlington. 
Lieutenant  Governor  Woodbury  informed  us  that  in  Burling- 
ton the  assessed  valuation  of  property  was  nearly  doubled  in 
one  year  after  the  law  went  into  effect,  the  increase  being 
chiefly  in  personal  property.  In  1886  the  assessed  valuation 
•of  personal  property  in  Burlington  was  about  42  per  cent  of 
•the  total  valuation. 

Contrary  to  what  we  had  been  led  to  believe,  we  found 
that  the  Vermont  grand  list  law  is  very  popular  among  the 
tax  payers.  We  interviewed  many  business  men  and  con- 
sulted the  assessors  of  several  cities.  While  for  a  year  or 
two  the  "prying"  qualities  of  the  statute  were  somewhat  dis- 
tasteful, when  it  was  found  that  "all  were  served  alike"  and 
that  the  tax  rate  went  down  as  the  aggregate  valuation  of 
property  went  up,  the  law  was  accepted  and  acquiesced  in  as, 
on  the  whole,  very  beneficial  to  the  state  at  large. 
/This  grand  list  law  is  not  the  only  reformation  Vrermont 
has  made  in  its  tax  laws  recently.  In  1882  the  legislature 
passed  a  corporation  tax  law  which  was  designed  to  yield 
revenues  enough  for  all  the  state  expenses  which  had  before 
been  derived  from  a  general  tax  on  polls  and  property.  It 
provided  for  a  direct  assessment  upon  the.  business  done  in 


26  REPORT    OF    TAX    COMMISSION. 

the  state  by  railroad,  insurance,  guarantee,  express,  tele- 
graph, telephone  and  transportation  companies  and  savings 
banks  and  trust  companies.  This  law  took  effect  in  1883. 
While  the  taxes  yielded  by  assessments  under  this  act 
amounted  to  $250,000  in  1889,  the  state  found  it  necessary  to 
levy  a  tax  of  two  mills  on  the  dollar  upon  property,  amount- 
ing to  $353,412.  It  will  evidently  be  some  time  before  the 
state  can  dispense  with  a  property  tax  for  state  purposes. 
The  effect  of  the  grand  list  law  is  very  clearly  seen  when  the 
rate  of  state  taxation  before  and  after  its  passage  are  com- 
pared. For  the  three  years  immediately  preceding  its  pas- 
sage the  rate  averaged  three  and  one-third  mills  on  the  dollar. 
While  for  the  three  years  succeeding  its  passage,  and  before 
the  corporation  tax  act  took  effect,  the  average  rate  was  but 
one  and  a  half  mills. 

If  it  is  inquired  :  "Has  not  this  inquisitorial  and  oath-com- 
pelling law  driven  property  out  of  the  state?"  we  are  able 
to  reply  that  we  have  found  no  evidence  of  it.  We  made 
special  inquiry  as  to  this  point.  While  much  money  is  being 
invested  in  Western  speculations — in  which  particular  Ver- 
mont is  like  all  the  rest  of  New  England — there  has  been  no 
loss  of  property  or  of  business,  so  tar  as  we  could  learn,  by- 
reason  of  the  new  system  of  taxation./' 

EQUALIZATION. 

Governor  Bod  well,  in  his  address  to  the  legislature,  in  Jan- 
uary, 18*7,  called  its  attention  to  the  need  of  an  improved 
system  for  equalizing  the  valuation  of  the  State,  as  follows  : 

"It  should  be  made  the  steady  aim  of  the  Legislative 
power  of  the  state  to  equalize  the  burdens  of  government. 
To  that  end  I  recommend  that  an  earnest  inquiry  be  made 
into  the  mode  of  our  valuation,  with  the  view  to  its  improve- 
ment. A  board,  composed  of  one  commissioner  from  each 
county,  hastily  summoned  at  the  close  of  each  decade,  with 
each  member  naturally  endeavoring  to  have  his  own  county 
valued  at  as  low  a  rate  as  possible,  would  not  seem  to  be  the 
best  method  devisable.  And  yet,  that  is  the  character  of  our 
present  system.  A  smaller  number  of  commissioners,  say 


REPORT    OF    TAX    COMMISSION.  27 

not  exceeding  three,  at  work  for  a  longer  period,  chosen,  not 
as  the  representatives  of  the  counties  in  which  they  may 
reside,  hut  for  the  whole  state,  would  he  less  cumhrous,  less 
expensive  and  in  many  ways  more  efficient.  The  systems  of 
valuation  in  force  in  other  New  England  states  should  he 
carefully  examined.  Some  improved  methods  in  tho-e  states 
could,  I  have  reason  to  believe,  he  profitably  incorporated  in 
our  own  system." 

Many  petitions  were  presented  to  the  legislature  of  that 
year,  asking  for  legislation  which  should  make  taxation  more 
equal.  Nothing,  however,  was  accomplished.  It  is  obviously 
impossible  for  any  committee  of  the  legislature,  in  the  hurry 
of  a  brief  session,  to  make  such  a  study  of  the  subject  as  to 
enable  them  to  agree  upon  any  important  changes  in  the  sys- 
tem, such  as  the  request  in  these  petitions  involved. 

In  his  inaugural  address,  in  January,  1889,  Governor  Bur- 
leigh  cogently  exposed  some  of  the  evils  of  the  present  mode 
of  equalizing  the  valuation  of  the  State.  He  said  : 

"It  will  be  j'our  duty  to  provide  for  the  valuation  of  the 
property  of  the  State  which  is  required  by  our  Constitution 
'at  least  once  in  ten  years.'  It  doubtless  gives  greater  satis- 
faction to  have  a  board  composed  of  one  representative  from 
each  county,  and  I  therefore  recommend  that  the  board  of 
valuation  be  thus  constituted.  In  some  respects,  however, 
evil  results  have  followed  from  the  zealous  and  yet  proper 
care  taken,  that  no  section  shall  be  taxed  more  than  its  tail- 
share  of  the  public  burdens.  Each  county  sedulously  guard- 
ing its  own  interests  and  securing  as  low  a  valuation  as  pos- 
sible, the  result  has  been  that  the  aggregate  official  valuation 
of  the  State  has  been  far  below  its  real  value.  In  this  respect 
the  State  of  Maine  has  not  been  presented  to  the  country  in 
as  strong  a  financial  position  as  she  is  entitled  to  hold.  We 
negotiated  our  war  loans  on  a  valuation  of  one  hundred  and 
sixty-two  millions  of  dollars,  and  if  it  had  been  really 
believed  that  that  sum  represented  the  actual  wealth  of  the 
State,  we  could  not  have  so  readily  placed  an  aggregate  loan 
that  amounted  to  five  per  cent  of  our  total  property.  The 
valuation  taken  by  the  United  States  Census  comes  nearer 
doing  us  perfect  justice  than  the  valuation  taken  by  the 
State,  for  in  1870,  when  the  State  Board  of  Valuation  said 
Maine  was  worth  8225,000,000,  the  United  States  Census 
fixed  the  valuation  at  8348,000,000.  In  18*0,  when  the 


28  REPORT    OF    TAX    COMMISSION. 

State  government  said  Maine  was  worth  $236,000,000  the 
United  States  census  fixed  the  valuation  at  $511,000,000. 

"If  the  incredulous  may  think  the  last  figures  of  the  United 
States  Census  were  too  high  those  best  acquainted  with  the 
extent  of  our  resources  and  of  our  recent  development  in 
many  directions  will  agree  that  it  is  very  much  nearer  the 
actual  amount  of  the  property  in  Maine  in  1880  than  is  given 
in  our  own  valuation." 

Governor  Plaisted  urged  upon  the  attention  of  the  legisla- 
ture of  1881,  the  necessity  of  more  frequent  readjustments  of 
the  valuation  of  the  State.  In  his  address  to  the  legislature 
he  said  : 

"This  equalization  of  the  public  burdens  so  devoutly  to  be 
wished  and  so  earnestly  to  be  sought  is  a  subject  that  should 
command  your  especial  attention.  Without  the  determina- 
tion of  values  for  the  purpose  of  taxation,  there  can  be  no 
equalization  of  the  public  burdens.  Values  should  be  read- 
justed oftener  than  once  in  ten  years.  State  boards  of  equal- 
ization, or  tax  commissioners  have  been  created  in  many 
states  of  the  Union,  for  the  determination  and  readjustment 
of  values  and  the  discovery  of  new  sources  of  revenue  for 
purposes  of  taxation." 


EQUALIZATION    IN    OTHER    STATES. 

The  methods  adopted  to  keep  valuations  equalized  in  man}' 
of  the  leading  states  are  here  given  : 

MASSACHUSETTS — The  treasurer  is  ex-officio,  tax  commis- 
sioner. A  deputy  tax  commissioner  who  has  charge  of  the 
whole  work  reports  to  the  General  Court  on  equalization  and 
apportionment  and  the  number  of  polls  every  third  year. 
The  deputy  tax  commissioner  is  also  commissioner  of  corpo- 
rations. Returns  of  local  assessors  are  made  to  him,  also 
returns  of  corporations,  from  which  he  prepares  abstracts  and 
makes  up  the  apportionments. 

NEW  HAMPSHIRE — The  legislature  makes  apportionment 
and  equalization  ever}  fourth  year,  on  report  of  the  state 
board  of  equalization,  consisting  of  five  members  appointed 
by  the  supreme  judicial  court  and  commissioned  by  the  gov- 
ernor. Inventories  of  property  are  returned  to  the  secretary 


REPORT    OF    TAX    COMMISSION.  2£ 

of  state  annually  by  selectmen  of  towns  and  by  county  com- 
missioners quadrennially.  The  county  commissioners  consti- 
tute a  board  of  equalization  for  each  county  and  are  required 
once  in  four  years  to  visit  every  town  in  their  county  and 
personally  inspect  property  subject  to  taxation  and  equalize 
values.  One  member  of  each  county  board  with  the  state 
board  constitutes  a  joint  board  of  equalization. 

CONNECTICUT — The  state  treasurer  and  comptroller  consti- 
tute the  state  board  of  equalization.  They  equalize  the 
assessment  lists  of  the  towns  every  year.  Upon  their  return 
of  valuation,  the  state  taxes  are  apportioned. 

VERMONT — City  and  town  "Listers"  make  up  lists  of  taxa- 
ble property  anfl  polls  and  return  the  same  to  their  respective 
town  clerks  on  or  before  April  15,  yearly.  Town  clerks  pre- 
pare in  form  prescribed  by  law,  abstracts  of  lists  and  return 
the  same  to  the  secretary  of  state  before  July  1,  yearly.  And 
from  these  abstracts  the  secretary  of  state  (having  reference 
to  equalizing  board  in  "quadrennial"  years)  makes  up  the 
state  list,  which  is  the  basis  for  the  apportionment  of  the 
state  tax.  Town  listers  to  return  new  appraisal  of  real  estate t 
every  four  years.  The  county  equalization  conventions,  made 
up  of  one  lister  from  each  town  in  the  county,  meet  in  the 
shire  towns  of  their  respective  counties  in  August  in  the  }^ear 
of  quadrennial  appraisal,  and  average  the  valuations  and 
return  corrected  lists  to  the  secretary  of  state.  The  state 
equalizing  board,  made  up  of  one  member  from  each  county 
convention,  meets  on  the  third  Tuesday  of  August  of  quad- 
rennial year,  and  makes  report  and  transmits  the  same  through 
the  secretary  of  state  to  the  legislature  on  the  second  Monday 
of  October.  This  valuation,  after  approval  by  the  legislature 
and  with  such  corrections  as  are  by  law  authorized  to  be  made 
from  year  to  year,  is  to  stand  for  four  years. 

KANSAS — The  assessors  of  the  several  towns  in  each  county 
meet  in  their  respective  shire  towns  annually  on  the  first 
Monday  of  March  and  agree  upon  an  equal  basis  for  valua- 


30  REPORT    OF    TAX    COMMISSION. 

tion  of  property.  The  county  commissioners  of  each  county, 
constituting  a  board  of  equalization  for  their  respective 
counties,  meet  annually,  on  the  first  Monday  of  June,  and 
equalize  the  value  of  real  property.  Clerk  of  court  forwards 
to  state  auditor  an  abstract  of  the  assessment  roll  of  real 
property  and  of  certain  personal  property.  The  state  board 
of  equalization,  consisting  of  the  secretary  of  state,  auditor 
and  treasurer,  with  power  to  appoint  assistants,  meets  each 
year,  on  the  second  Wednesday  of  July  and  apportions  and 
equalizes  the  state  tax  among  the  several  counties. 

IOWA — The  executive  council  constitutes  the  state  board  of 
equalization,  and  meets  in  July  of  each  year  in  which  real 
estate  is  assessed.  This  board  equalizes  from  abstracts 
returned  by  county  boards.  Tlie  county  boards  of  equaliza- 
tion consisting  of  the  county  supervisors,  meet  in  their  respec- 
tive counties  each  year  in  June,  and  equalize  the  assessments 
of  the  several  towns  in  their  respective  counties.  The  town 
boards  of  equalization  consist  of  the  township  trustees. 

MINNESOTA — County  boards  of  equalization,  consisting  of 
the  county  commissioners,  or  a  majority  of  them,  and  county 
auditor,  equalize  all  valuations  in  their  respective  counties 
from  returns  of  towns.  The  state  board  of  equalization  con- 
sisting of  the  governor,  state  auditor  and  attorney  general, 
with  one  qualified  elector  from  each  judicial  district,  appointed 
by  the  governor,  with  consent  of  the  senate,  meets  annually 
to  equalize  state  valuation. 

MICHIGAN — The  state  board  of  equalization,  consisting  of 
the  lieutenant  governor,  auditor  general,  secretary  of  state, 
state  revenue  commissioner  and  land  officer,  meet  periodically 
for  purpose  of  equalizing  the  state  taxes. 

ILLINOIS — State  board  of  equalization,  consisting  of  one 
member  from  each  congressional  district,  and  elected  by  the 
people  every  fourth  year,  with  power  to  appoint  assistants, 
equalize  valuations  and  apportion  state  taxes  every  year. 


REPORT    OF    TAX    COMMISSION.  31 

PENNSYLVANIA — Equalization  board,  called  revenue  com- 
missioners, consisting  of  auditor  general,  state  treasurer  and 
secretary  of  state,  meet  triennially.  The  county  commis- 
sioners of  the  several  counties  return  to  the  board  aggregates 
of  all  taxable  property  as  returned  to  them  by  town  asse>.M>rs. 
The  revenue  commissioners  then  equalize  "as  far  as  possible 
to  make  all  taxes  bear  equally  upon  all  property  in  the  com- 
monwealth in  proportion  to  its  actual  value." 

XEW  YORK — There  are  three  state  assessors  appointed  by 
governor,  who  with  the  commissioner  of  the  land  office,  con- 
stitute a  >tate  board  of  equalization.  This  board  equalizes 
the  valuation  of  the  state  annually.  The  state  assessors  must 
visit  each  county  once  in  two  years  and  prepare  statistics  and 
facts  relating  to  the  value  of  property  of  all  kinds. 

WISCONSIN — The  town  board  of  review  consisting  of  super- 
visors, clerk  and  assessors  of  cities  and  the  president,  clerk 
and  assessors  of  villages,  meets  annually  on  last  Monday  of 
June,  for  purpose  of  equalization,  and  constitute  a  board  of 
appeal.  Town  boards  make  return  of  aggregates  to  county 
clerk,  who  in  turn  transmits  abstract  to  secretary  of  state. 
The  state  board  of  equalization,  consisting  of  secretary  of 
state,  treasurer  and  attorney  general,  meets  annually,  and 
equalizes  values  preparatory  to  assessing  state  tax.  County 
board  equalizes  annually  as  basis  of  county  tax. 

CALIFORNIA — The  state  board  of  equalization  consisting  of 
the  comptroller  (ex-officio)  and  two  other  members  appointed 
by  the  governor,  and  provided  with  a  clerk,  equalizes  bien- 
nially. State  board  of  equalization  may  fix  the  rate  of  state 
tax  in  the  absence  of  action  by  county  board  of  supervisors 
whose  powers  under  the  California  code  are  very  large.  The 
latter  equalize  annually  for  county  purposes  and  every  county 
tax  not  exceeding  one  per  cent  of  valuation.  For  taxation 
purposes,  the  county  is  the  unit. 

By  act  of  1889,  the  state  board  of  equalization  is  charged 
tvith  the  duty  of  assessing  railroads. 


32  REPORT    OF    TAX    COMMISSION. 

The  following  states  also  have  boards  of  equalization  r 
Arizona,  Colorado,  Idaho,  Nebraska,  North  Dakota,  South 
Dakota  and  Wyoming. 

Ohio  is  the  only  state,  we  think,  besides  Maine,  in  which 
the  valuation  is  equalized  but  once  in  ten  years.  In  his  annual 
message,  January,  1887,  Governor  Foraker  said  : 

"The  last  decennial  appraisement  of  real  estate  (1&80)  was 
had  at  a  period  of  great  prosperity,  it  was  a  time  of  high  val- 
ues ;  since  then  there  has  been  a  heavy  decline;  farm  prop- 
erty is  from  twenty-five  to  fifty  per  cent,  cheaper  to-day  than 
it  was  then.  *  The  valuations 

placed  upon  the  real  estate  of  these  cities  (certain  large  cities 
of  the  state)  are  in  the  aggregate  fifty  per  cent  of  their  true 
value  in  money,  and,  in  some  cases  will  not  exceed  twenty- 
five  per  cent." 

Thus  were  the  depreciating  farm  lands  made  to  pay  more 
and  the  rising  city  lands  less  than  their  share  of  taxes  for  a 
portion,  at  least,  of  the  decade.  Precisely  the  same  thing- 
has  occurred  in  Maine  as  will  be  seen  by  a  glance  at  the  table 
in  the  appendix. 

That  table  was  made  up  before  the  report  of  the  valuation- 
commission  for  1890  was  made,  and  shows  an  increase  since 
1880  of  $30,880,069  in  valuation  of  the  state,  including  wild 
lands.  This  increase,  however,  was  in  eleven  counties  only, 
while  in  five  counties  there  was  a  decrease  in  value  of  $2,481,- 
320.  It  is  clear  that  for  a  portion  of  the  ten  years  the  five 
losing  counties,  farming  counties  in  every  instance,  have  been 
paying  more  than  their  share  of  state  and  county  taxes,  and 
that  the  eleven  counties  making  the  gains,  counties  in  which 
the  cities  are  situated,  have  been  paying  less.  In  other 
words,  burdens  belonging  to  the  prosperous  and  wealthy 
counties  to  carry  have  been  placed  by  this  system  of  decen- 
nial equalization,  upon  the  counties  which  are  growing  poorer. 
This  $30,000,000  of  increase  at  two  and  one-fourth  mills  on 
the  dollar,  the  present  tax  rate,  would  have  yielded  the  State 
$(-57,500  per  year.  Or  taking  $3,000,000  as  the  average 
yearly  increase  for  the  ten  years,  the  tax  on  it  would  have 
averaged  $33,500  per  year,  which  other  property  has  unjustly 
been  obliged  to  pay ,  aggregating  for  the  whole  period  $635,000. 


REPORT    OF    TAX    COMMISSION.  33 


STATE    ASSESSORS. 

The  want  of  a  central  supervising  head  to  our  tax  system 
we  would  supply  by  having  a  state  board  of  assessors  whose 
duties  shall  include  among  others,  the  general  oversight  of 
the  state  revenues,  the  assessment  of  such  corporations  as 
pay  taxes  directly  to  the  state,  the  formulating  and  prepara- 
tion of  blank  lists  for  returns  of  tax  payers  to  the  local 
assessors ;  the  inventories  of  assessors ;  blank  books  for 
annual  return  of  aggregates  by  local  to  state  assessors ;  the 
apportionment  of  state  taxes  voted  by  the  legislature  and  the 
enforcement  of  taxes,  delinquent,  upon  wild  lands  and  ID 
unincorporated  places.  A  not  less  important  function  of  the 
state  assessors  in  the  plan  we  recommend,  is  that  of  state 
board  of  equalization.  It  is  made  their  duty  to  equalize  the 
valuation  of  the  state  biennially,  in  order  that  taxes  voted  by 
each  legislature  may  be  assessed  on  a  new  valuation,  as  it 
actually  exists  at  the  time  of  the  assessment.  It  will  also  be 
the  province  and  duty  of  the  state  assessors  to  preserve  and 
report  tabulated  statistics  of  taxation  and  valuation  of  the 
different  classes  of  property  in  the  state,  which  have  never 
been  heretofore  kept.  In  respect  to  such  statistics,  our  archives 
are  singularly  deficient.  Nothing  of  our  valuation  has  been 
officially  preserved  excepting  the  decennial  valuation  in  the 
aggregate  by  towns,  of  the  valuation  commissioners.  And 
these  do  not  distinguish  between  real  and  personal  property. 
The  resolves  under  which  they  have  been  appointed  from  time 
to  time  have  not  required  anything  more  than  aggregate  val- 
uations and  polls  to  be  reported.  There  is  no  record  of  the 
amount  and  value  of  personal  property  or  of  real  estate  sepa- 
rately assessed  ;  and  no  data  whatever  from  which  may  be 
learned  the  progress  or  regress  of  the  state  or  of  any  county 
or  section  of  it  in  the  amount  and  value  of  the  several  classes 
of  assessable  property  ;  of  the  cattle,  horses,  buildings,  stocks, 
mortgages,  money  at  interest,  ships  and  vessels,  stocks  in 
trade  and  the  like.  Such  statistics  for  the  last  few  decades 


34  REPORT    OF    TAX    COMMISSION. 

would  have  been  very  serviceable  to  us  in  ascertaining  what 
property,  and  to  what  extent,  has  escaped  its  share  of  taxa- 
tion, and  to  what  extent  the  law,  the  assessors  or  the  collect- 
ors have  been  responsible. 

No  state,  we  think,  is  so  much  remiss  in  this  respect  as 
ours.  A  letter  to  the  secretary  of  state  of  any  state  from 
which  we  have  desired  statements  in  detail  of  valuations,  has 
brought  the  information  in  reports  of  auditors,  comptrollers, 
state  assessors,  tax  commissioners  or  equalization  boards, 
while  we  have  called  in  vain  upon  the  records  of  our  own 
State  for  much  needed  data,  whereby  comparative  research 
could  be  made. 

Thus  constituting  the  state  assessors  an  equalizing  board 
will  insure  a  more  frequent  equalization  of  values  by  officials 
who  would  be  independent  of  local  influences.  Such  a  change 
has  long  been  urged  upon  the  legislature  by  successive  gov- 
ernors, and  we  believe  is  generally  demanded  throughout  the 
state  as  promising  a  substantial  measure  of  relief. 

The  plan  embodied  in  the  bill  is  to  have  three  state  asses- 
sors, to  be  appointed  by  the  governor  with  the  confirmation 
of  the  council.  It  appears  to  us  reasonable  and  proper  that 
a  board  vested  with  such  powers  and  duties  should  be  removed 
as  far  as  possible  from  the  suspicion  of  partizanship,  and  made 
as  independent  of  party  as  our  system  of  government  will 
permit.  We  recommend  therefore,  and  so  provide  in  the 
bill,  that  one  of  the  associate  members  must  be  taken  from 
each  of  the  leading  political  parties.  That  the  knowledge 
and  experience  gained  by  these  officials  may  be  utilized  for 
the  state  their  term  of  office  is  fixed  at  six  years  and  the  term 
of  but  one  is  to  expire  the  same  year. 

The  office,  it  will  be  readily  seen,  is  no  sinecure.  It 
requires  the  highest  order  of  ability,  intelligence  and  char- 
acter. Such  men  as  are  necessary  to  fill  the  position  with  the 
greatest  benefit  to  the  people  cannot  be  found  for  small  pay. 
The  salary  must  be  in  some  degree  commensurate  with  the 
important  service  required.  The  sums  named  in  the  bill  as 
salaries  are  certainly  as  small  as  will  secure  the  talent  required. 


REPORT    OF    TAX    COMMISSION.  35 

The  cost  to  the  state  directly  of  making  such  equalization  as 
can  be  made  under  our  present  system  in  a  single  ,>ear  is 
$1(),000.  It  is  impossible  to  estimate  the  cost  to  towns  for 
sending  officials  and  counsel  to  Augusta  to  secure  lower  valu- 
ations but  it  must  amount  in  the  aggregate  to  thousands. 
Massachusetts  pays  its  deputy  tax  commissioner  a  salary  of 
$2,750  and  to  his  assistants  in  the  aggregate,  about  $ti7,000 
more,  annually.  New  Jersey  has  four  state  assessors  at  a 
salary  of  $2,500  each  and  expenses.  Maryland  pays  her  tax 
commissioner  82,500  a  year  and  travelling  expenses  to  the 
amount  of  $800.  In  none  of  these  cases  do  the  officers  also 
have  to  perform  the  duties  of  an  equalizing  board.  The 
duties  of  the  state  assessors  will  certainly  not  be  less  onerous 
or  important  to  the  public  than  are  those  of  the  railroad  com- 
missioners the  amount  of  whose  compensation  is  the  same  as 
we  suirgest  in  the  bill  for  the  state  assessors.* 

INCOME    TAXES. 

Many  theories,  in  the  discussion  of  the  tax  problem,  advo- 
cate an  income  tax  as  the  fairest  form  of  taxation.  In  theory 
there  is  much  to  sustain  it.  In  practice  it  is  almost  universally 
a  failure.  In  theory  it  seems  just  that  a  person  should  be 
taxed  upon  the  net  yield  of  his  occupation  or  investments  the 
best  gauge  of  his  taxable  ability,  but  in  the  levying  of  such  a 
tax  it  has  always  been  found  that  art,  subterfuge,  evasion  and 
downright  perjury  have  rendered  the  system  inefficient  and 
futile.  To  tax  capital,  property,  lands  and  also  the  income 
arising  from  their  employment  is  intolerable  as  double  taxa- 
tion ;  to  exempt  such  property  and  rely  on  the  income  from 
them  alone  leaves  open  a  hundred  ways  for  evasion  and  is 

*XOTE — The  Special  Tax  Commission  ol  Connecticut  forcibly  reco  ivnend  a  permanent  tax 
commission  for  that  state.  They  say  in  their  Report  to  the  General  A.- -e. ably  :  "We  believe 
that  the  time  has  now  come  when  such  a  measure  mu*t  be  adopted  in  ordci  r<>  make  our  tax 
system  accomplish  its  design.  The  additional  expense  attached  to  the  creation  u;  a  ;K-\V  office, 
will,  we  are  confident,  be  repaid  many  fold  to  the  state  itseif  by  the  increase  of  revenue  which 
may  fairly  be  anticipated  from  the  general  supervision  over  its  assessment  and  collection  to  be 
received  by  the  tax  commissioner,  while  the  adjustment  of  the  state  taxes  between  the  towns 
can  hardly  fail  to  be  made  with  more  fairness  and  equality." 


36  REPORT    OF    TAX    COMMISSION. 

open  to  grave  objections  as  being  in  conflict  with  the  consti- 
tutional provision  requiring  that  all  property  shall  be  taxed 
according  to  its  just  value.  It  has  been  tried  in  several 
states,  but  has  proved  unsatisfactory  in  all,  and  it  is  a  potent 
argument  against  this  form  of  taxation,  that  in  the  efforts  that 
have  been  made  in  most  states  of  the  Union,  during  the  past  ten 
years,  to  find  new  sources  of  revenue,  there  has  been  so  little 
disposition  to  resort  to  income  taxes.  In  North  Carolina,  by 
act  of  1889,  a  tax  of  one  per  cent  was  laid  on  incomes  derived 
from  property  not  otherwise  taxed,  and  of  one-half  of  one 
per  cent  on  salaries  and  fees  allowing  the  individual  return- 
ing his  income  to  deduct  $1000  for  family  expenses.  Virginia 
has  a  general  income  tax  law,  but  judging  from  its  results  to 
the  revenue  of  the  state  it  appears  to  be  much  "more  honored 
in  the  breach  than  in  the  observance,"  as  only  about  $16,000- 
is  realized  from  the  tax  on  incomes  in  a  year.  Massachusetts 
nominally  taxes  "so  much  of  the  income  from  a  profession, 
trade  or  employment  as  exceeds  the  sum  of  $2000  a  year," 
but  according  to  the  assessors'  lists  the  number  of  individuals 
whose  incomes  exceed  that  sum  is  surprisingly  small.  The 
only  other  state,  in  whose  revenue  system  the  income  tax  is 
a  feature,  is  Pennsylvania,  where  a  special  tax  is  levied  on 
the  income  of  private  bankers  and  brokers. 

Writers  on  taxation  who  are  most  opposed  to  taxes  on  gen- 
eral property  are  not  agreed  as  to  the  justness  or  feasibility 
of  income  taxes.  Judge  Cooley  vigorously  opposes  this 
form  of  taxation  as  follows  :  "Income  taxes  are  inquisitorial 
and  teach  evasion  and  fraud.  No  means  at  the  command  of 
government  has  ever  enabled  it  to  arrive,  with  anything  like 
accuracy,  at  the  incomes  of  its  citizens.  They  resist  in  all 
practicable  modes,  not  only  because  they  desire  to  avoid  the 
public  burdens  which  they  are  certain  are  not  equally  imposed, 
but  also  because  they  are  not  willing  that  their  private  affairs 
be  exposed  to  the  public."  It  is  as  difficult  to  apply  such  a 
tax  in  this  age  as  it  was  in  Rome  under  the  Empire  when 
torture  was  applied  b}'  the  assessors  to  ascertain  the  profits 
of  employments. 


REPORT    OF    TAX    COMMISSION.  37 

We  have  seen  this  form  of  taxation  advocated  by  well  mean- 
ing writers  as  being  in  the  interest  of  farmers.  If  it  were 
practicable  to  set  at  all  incomes  for  taxation,  the  tanner  would 
be  benefited  as  all  other  classes  would  be  by  the  consequent 
lessening  of  general  property  taxes,  hut,  under  the  practical 
workings  of  such  a  method,  the  farmer  would  be  placed  at 
great  disadvantage  and  put  to  much  vexatious  labor.  It  would 
not  only  become  necessary  for  him  to  keep  strict  account  of 
his  receipts  and  expenses  but  also  the  value  of  the  farm  prod- 
ucts consumed  on  the  farm,  for  such  products  would  assuredly 
be  a  part  of  his  income  applied  toward  the  support  of  his 
famiiy. 

In  view  of  the  facts  above  stated,  we  have  not  thought  it 
advisable  to  include  an  income  tax  in  the  system  herewith 
proposed.  Clergymen,  professors  of  colleges,  clerks  and  sal- 
aried officers,  could  thus  be  reached  quite  effectively  doubt- 
less, but  it  is  not  thought  that  it  is  required  that  these  should 
be  singled  out  for  a  special  mode  of  taxation,  especially  as 
many  have  houses  or  other  taxable  property  in  which  their 
incomes, .above  the  cost  of  living,  is  invested. 

THE    TAX    ASSESSOR. 

Whatever  system  of  taxation  may  be  adopted,  the  responsi- 
bility for  its  efficient  and  just  operation  must  rest  largely  upon 
the  assessors.  They  are  to  fix  the  values  and  upon  their 
activity  and  faithfulness,  in  a  good  degree,  depends  the  bring- 
ing to  light  much  property  for  purposes  of  taxation  that  would 
otherwise  escape.  The  assessor,  above  all  other  town  officials, 
should  possess  the  attributes  of  intelligence,  sound  judgment 
and  courage.  He  should  be  a  man  who  cannot  be  bribed  or 
CMJoled  from  the  strict  line  of  his  duty,  to  "assess  all  property 
equally  and  according  to  the  just  value  thereof,"  as  required 
l-»y  the  imperative  mandate  of  the  Constitution. 

Then-  is  no  more  responsible  officer  under  our  town  system 
of  government,  the  whole  fabric  of  which  may  be  said  to  rest 
and  its  institutions  to  operate  through  and  by  its  system  of 


38  REPORT    OF    TAX    COMMISSIJN. 

revenues.  Recognizing  the  vital  importance  of  sound  and 
sure  provisions  for  securing  revenue,  the  national  government 
protects  the  raising  and  collection  of  them  with  the  safeguards 
of  its  severest  penal  laws,  and  the  evasion  of  a  tax  duly 
imposed  by  the  government  incurs  the  penalty  of  heavy  for- 
feitures, fines  or  imprisonment.  The  revenue  laws  of  the 
United  States  exact  the  most  scrupulous  observance  of  its- 
provisions,  not  only  as  to  the  individual  who  would  evade 
payment  of  his  dues,  but  as  to  the  officer  whose  duty  it  is  to 
enforce  it.  The  state  laws  should  be  equally  peremptory  in 
holding  revenue  officers  to  strict  fidelity  in  their  enforcement. 
Our  Maine  assessors  are  unquestionably  as  able  and  efficient 
as  any  and  the  fault  is  largely  in  the  looseness  of  the  tax  law. 
Yet  it  has  long  been  the  custom  of  assessors  to  ignore  the 
explicit  requirement  of  the  Constitution  of  the  State  above 
quoted.  Property  is  assessed  at  much  less  than  its  just  value 
in  many  towns.  It  is  very  common  for  assessors  to  value  real 
estate  at  three-fourths,  two-thirds  and  even  one-half  its  true 
value.  In  the  late  returns  of  the  assessors  of  all  the  towns  of 
the  State  for  the  use  of  the  State  Valuation  Commissioners  it 
appears  that  the  assessors  of  132  towns  based  their  taxes  on 
less  than  "a  just  value"  of  the  property  assessed.  Thirteen 
based  them  on  four-fifths  value,  thirty-five  on  three-fourths 
value,  fifty-three  on  two-thirds  value,  and  sixteen  on  one- 
half,  while  in  two  towns  the  assessors  considered  their  duty 
done  when  they  assessed  at  one-third  of  the  "cash  value"  of 
the  property  taxed. 

It  has  been  our  purpose  to  make  the  assessor  the  important 
and  responsible  officer  that  he  should  be  under  our  system 
and  yet  to  make  him  the  executor  and  servant  of  the  law,  and 
not  its  superior.  The  proposed  law,  therefore,  leaves  but 
little  discretion  in  his  hands.  It  points  the  way  and  commands 
him  to  follow  under  severe  penalties  for  neglect  or  misfeas- 
ance. It  holds  him  rigidly  to  a  just  valuation  with  no  discre- 
tion to  construe  that  to  mean  a  half  value,  and  is  equally 
explicit  in  forbidding  any  intentional  under-valuation  or  over- 


REPORT    OF    TAX    COMMISSION.  .')'.! 

valuation  in  any  case  or  for  any  purpose  whatever.  With  all 
the  assessors  in  the  State  doing  their  duties  promptly,  faith- 
fully and  all  alike  under  the  general  supervision  of  a  board  of 
State  assessors  held,  by  provisions  of  equal  explicitne^s,  to 
fidelity  and  vigilance,  a  nearer  approach  to  equality  and  hence 
a  lessening  of  the  rate  of  taxation  may  be  confidently  looked 
for. 

As  a  measure  towards  making  assessors  independent  of 
local  circumstances,  we  recommend  a  change  in  the  law  pro- 
viding for  their  election  and  tenure  of  office  in  towns  having 
more  than  two  thousand  inhabitants  and  submit  herewith  a  bill 
which  provides  that  in  such  towns  the  selectmen  shall  not  be 
assessors  and  that  assessors  shall  hold  office  for  three  years, 
one  going  out  each  year,  if  there  are  three,  and  one  or  two 
as  their  terms  expire,  if  five  are  chosen.  This  method,  it  is 
believed,  will  insure  experience  as  well  as  independence,  to  a 
greater  degree  than  the  present  method  of  yearly  rotation  of 
the  whole  board  and  a  mixture  of  the  duties  of  selectmen  and 
assessors  in  the  same  persons. 

POLL    TAXES. 

Under  our  present  statute,  a  poll  tax  of  not  exceeding  three 
dollars  is  assessable  upon  every  male  inhabitant  above  the 
age  of  twenty-one  years  (with  certain  exemptions)  for  state, 
county  and  town  purposes,  and  an  equal  sum  may  be  assessed 
on  each  poll  for  highway  expenses.  This  makes  it  possible 
for  towns  to  assess  six  dollars,  in  all,  as  a  poll  tax.  There  is 
great  variety  in  the  poll  tax  laws  of  the  several  states.  Some 
states  have  abolished  the  poll  tax  entirely.  Some  make  its 
payment  a  prerequisite  to  the  right  to  vote. 

MASSACHUSETTS  imposes  a  poll  tax  of  $1.00  on  male  citi- 
zens above  twenty  years  of  age  and  fifty  cents  on  females  of 
voting  age  svho  ask  to  be  taxed  in  order  to  exercise  their 
limited  right  of  suffrage.  State  and  county  taxes  only  assessed 
on  polls.  Xo  town  or  highway  poll  taxes. 


40  REPORT    OF    TAX    COMMISSION. 

NEW  HAMPSHIRE — All  male  poles  from  twenty-one  to 
seventy  years  of  age,  except  paupers  and  insane  persons,  are 
taxed.  The  tax  must  be  equal  to  the  tax  on  $100  of  valuation 
of  property  in  the  town  where  the  poll  is  taxed.  Disabled 
soldiers  oi  the  late  war  may  be  exempted,  in  the  discretion  of 
the  selectmen. 

VERMONT  taxes  two  dollars  on  all  polls  of  male  inhabitants, 
citizens  and  aliens,  with  exemption  of  persons  actually  poor 
and  soldiers  who  lost  an  arm,  leg  or  eye-sight  in  the  war. 
Members  of  the  militia  or  of  fire  companies  may  be  exempted 
if  towns  so  vote. 

CONNECTICUT — The  poll  tax  is  one  dollar  and  no  more  for 
town  and  state  purposes,  and  school  districts  may  tax  at  the 
same  rate  as  $100  value  of  property  is  taxed  by  the  district. 
A  great  many  exemptions  of  the  poll  tax  are  provided  for  ; 
students,  members  of  fire  companies,  active  members  of 
militia  companies,  and  soldiers  who  served  three  months  in 
the  late  war,  ministers,  priests,  paupers,  idiots,  lunatics  and 
indigent,  sick  and  infirm  persons  and  persons  above  seventy 
years  of  age.  Every  able  bodied  person  is  required  to  work 
by  himself  or  substitute  at  least  one  day  on  the  highway, 
commutable  at  twelve  and  a  half  cents  an  hour. 

PENNSYLVANIA  restricts  its  poll  taxes  to  persons  holding 
offices  and  posts  of  profit,  professions,  trades,  occupations 
and  single  free  men,  above  the  age  of  twenty-one  years  who 
shall  follow  no  trade,  occupation  or  calling.  It  is  unlimited 
for  state  and  county  purposes,  and  for  school  purposes  not 
less  than  fifty  cents. 

Section  1  of  Art.  8  of  the  Constitution  of  Pennsylvania 
requires  as  a  qualification  to  vote,  that  the  citizen  shall,  if 
twenty-two  years  of  age  or  upward,  have  paid  a  state  or 
county  tax  assessed  within  two  years,  and  paid  at  least  one 
month  before  election.  By  joint  resolution  the  legislature 
has  this  year  submitted  to  the  people  a  proposed  amendment, 
doing  away  with  this  requirement  of  the  Constitution.  (Laws 
of  1889,  p.  439.; 


REPORT    OF    TAX    COMMISSION.  41 

QHIO — The  poll  t;ix  in  this  state  is  fixed  in  amount  to  two 
•days-'  labor  on  the  highway  and  is  conmuitable  at  $3.00.  It 
is  imposed  on  all  males  between  twenty-one  and  fifty-five 
years  of  age.  The  exemptions  are  disabled  soldiers  pensioned 
by  the  United  States  and  members  of  fire  companies  serving 
without  pay. 

ILLINOIS  has  no  poll  tax  law. 

KANSAS — Municipal  corporations  having  less  than  15,000 
inhabitants  may  impose  a  poll  tax  of  not  exceeding  $1.00  on 
male  inhabitants  over  twenty-one  years  of  age.  Active  mem- 
bers of  fire  companies  are  exempt. 

CALIFORNIA — Every  male  inhabitant  between  the  ages  of 
twenty-one  and  sixty  must  pay  a  poll  tax  of  $2.00.  The 
exempts  are  officers,  musicians  and  privates  of  the  national 
guard,  while  doing  military  service,  and  all  who  have  served 
for  seven  consecutive  years.  A  highway  poll  tax  of  two  days' 
labor  on  roads,  commutable  at  $4.00  or  at  such  rate  not 
exceeding  that  amount  as  the  assessors  may  fix,  is  also 
provided. 

MINNESOTA — The  poll  tax  law  is  as  follows:  "It  shall  be 
lawful  for  the  Common  Council  of  cities  of  above  2,000  inhabi- 
tants, to  levy  at  any  time  a  corporation  poll  tax  upon  every 
qualified  voter,  not  exceeding  $2.00  a  year." 

WISCONSIN  —  Every  male  inhabitant  between  twenty-one 
•and  fifty  years  of  age  must  pay  a  poll  tax  of  $1.50  for  high- 
way purposes.  The  exempts  are  disabled  soldiprs  of  the  late 
war,  paupers,  idiots,  lunatics  and  members  of  the  militia  dur- 
ing service  and  after  five  years  of  service.  Town  boards 
may  exempt  the  poor  and  infirm.  No  other  poll  tax. 

GEORGIA — The  state  imposes  a  poll  tax  of  $1.00  upon 
every  person  between  the  ages  of  twTenty-one  and  sixty  years. 
The  blind  and  persons  not  owning  $500  worth  of  property 
-are  exempt.  Municipalities  are  prohibited  from  assessing 
poll  taxes. 

MARYLAND  imposes  no  poll  tax. 


42  REPORT    OF    TAX    COMMISSION. 

The  foregoing  are  examples  of  the  poll  tax  laws  of  states- 
representing  the  different  sections  of  the  country.  It  will  be* 
noticed  that  none  allows  so  large  a  poll  tax  as  may  he  assessed 
in  this  State  for  state,  county,  town  and  highway  purposes,, 
and  that,  unlike  Maine,  the  amount  of  the  tax  in  nearly  every 
state  is  a  fixed  definite  sum.  With  a  view  to  ascertain  the- 
judgment  of  experienced  town  officers,  as  to  any  desirable 
change  in  our  poll  tax  law,  we  addressed  inquiries  to  the 
assessors  of  all  the  cities  and  principal  towns  in  the  State,, 
asking  suggestions.  We  received  replies  from  120  boards. 
In  these  towns  and  cities  a  little  more  than  seven  per  cent  of 
the  poll  taxes  are  lost  and  abated.  But  the  loss  is  mainly  ii> 
the  cities.  Only  nine  cities  reported,  and  in  these  the  loss- 
was  from  seven  to  fifty  per  cent,  the  average  being  twenty 
per  cent.  About  half  the  towns  assess  a  tax  of  $3.00  ami 
the  rest  from  $1.00  to  $2.50.  The  largest  percentage  of 
losses  are  in  the  towns  assessing  the  highest  tax.  The  opin- 
ions of  the  assessors  are  varied  and  it  is  pretty  difficult  to  get 
a  definite  result  from  them  taken  together,  but  they  pretty 
well  represent  the  condition  of  the  public  mind  upon  the 
general  subject  of  taxation.  Following  are  some  of  the 
suggestions  : 

Eight  say,  "The  maximum  tax  should  be  $2.00." 
Thirteen  say,  "Make  the  tax  uniform  throughout  the  state.''' 
Nine  say,  "Make  the  payment  of  a  poll  tax  a  qualifications 
to  vote." 

Six  s.ay,  "Exempt  all  over  70  years  old." 
Five  say,  "Exempt  all  over  60  years  old." 
Three  say,  "Exempt  all  over  50  years  old." 
Some  say,  "The  tax  should  not  be  over  $1.00." 
Others,  "Let  five  dollars  be  the  maximum/' 
Others,  "Three  dollars  is  little  enough." 
Others,  "The  law  is  all  right  as  it  is." 

We  have  decided  to  recommend  a  change,  not  so  much  to»^ 
put   the  poll   tax  provision  of  the   law  in   harmony  with   the 
opinions  expressed   in   these   returns  as   to  make  it   more  in* 


REPORT    OF    TAX    COMMISSION.  43 

keeping  with  the  laws  of  our  sister  states,  and  have  taken 
away  the  discretion  of  towns  and  fixed  it  at  two  dollars  for 
general  purposes  and  not  exceeding  two  dollars  for  highway 
purposes,  making  the  age  limits  twenty-one  and  seventy 
years  ;  other  exemptions  remaining  as  at  present. 

TAXATION    OF    DOGS. 

As  the  system  of  taxation  in  nearly  every  state  in  this 
country  includes  provisions  more  or  less  elaborate  for  the 
taxation  of  dogs,  and  the  disposal  of  the  funds  arising  from 
such  taxation,  your  Commissioners  believed  it  to  be  their  duty 
to  examine  the  various  methods  adopted  and  recommend  what- 
ever, in  their  judgment,  would  improve  our  law  upon  this 
subject.  Whether  the  dog  is  to  be  considered  a  domestic 
animal,  as  so  eloquently  and  powerfully  maintained  by  Chief 
Justice  Appleton,  dissenting  in  the  celebrated  dog  case  re- 
corded in  Vol.  75  Maine  Reports,  or  to  belong  to  the  class  of 
animals  ferae  naturae  as  the  majority  of  the  court  there 
decided,  all  states  have  found  it  necessary,  for  the  protec- 
tion of  sheep  at  least,  to  enact  special  laws  to  that  end.  While 
it  may  be  true,  as  Judge  Appleton  asserts  in  the  language  of 
Cuvier,  that  barbarous  nations  owe  much  of  their  civilization 
above  the  brute  to  the  possession  of  a  dog,  it  is  still  true  that 
many  a  sheep  raiser  owes  much  of  his  yearly  losses  to  his 
neighbor's  possession  of  a  dog. 

There  are  dogs  and  dogs.  There  always  will  be  as  broad  a 
distinction  in  their  natures  as  in  their  breeds,  and  the  worst 
sheep  killer  among  them  may  still  be  the  ''friend  and  com- 
panion of  his  master"  and,  as  presumed  by  the  common  law, 
a  tame  animal  "in  the  home,  under  the  roof  and  by  the  fire- 
side." The  person  who  can  afford  the  indulgence  of  such  a 
friend  and  companion  as  a  dog  ought  not  to  complain  at  any 
slight  tax  that  may  be  imposed  for  the  protection  of  property 
on  which  a  tax  is  levied  ;>gainst  the  possible,  or  rather  the 
probable,  ravages  of  the  canine  race.  As  it  is  impossible  to 
draw  the  line  between  those  dogs  that  may  be  trusted  and 


44  REPORT    OF    TAX    COMMISSION. 

those  that  may  not  be,  the  tax  must  of  necessity  be  general — a 
sort  of  mutual  insurance  against  the  sudden  relapse  of  any  of 
their  number  into  his  savage  state  and  committing  damage. 
The  numerous  instances  of  such  damage,  the  yearly  slaughter 
of  sheep  by  dogs,  to  the  discouragement  in  many  sections  of 
sheep  husbandry,  would  seem  to  demand  a  better  regulation 
than  we  have  as  to  the  taxation  of  dogs  and  a  method  of 
appropriating  the  proceeds  of  the  tax  to  making  good,  as  far 
iis  possible,  such  damages.  The  law,  as  it  now  is,  effects  but 
little.  It  is  left  discretionary  with  towns  to  impose  the  tax. 
In  cities  where  the  non-owners  of  dogs  are  more  numerous 
than  the  owners  of  them,  and  where  there  are  few  sheep 
within  reach  of  dogs,  they  are  generally  taxed,  while  in  the 
farming  towns  they  escape  taxation,  if  the  dog  owners  are 
more  numerous  or  influential  than  the  sheep  owners.  In  the 
words  of  a  farmer,  "the  dog  ought  not  to  be  allowed  to  vote 
on  this  question."  In  fact,  Maine  is  about  the  only  State 
that  leaves  the  matter  open  for  the  dog's  influence.  In  the  fol- 
lowing states  the  legislatures  have  fixed  the  tax  and  provided 
for  the  disposal  of  the  money  arising  from  it : 


REPORT    OF    TAX    COMMISSION. 


TAX. 

How  Appropriated. 

Male  Dog. 

Female 
Dog. 

-ichusetts, 
Connecticut.  .  • 

X.  Hampshire. 
Vermont 

82  00 
1  15 

1  00 

81  if  paid  April  1  ;  82 
if  paid  by  May  15. 

C  First  dog  81  ;   additional 
i                 dog,  82. 

81.00 

{25  cents  first  dog;    sec- 
ond dog,  $1  ;  each  addi- 
tional, 82. 
81.00 
Valu'd  and  tax'd  like  other 
80  50 

1  00 
1  00 
2  00 
1  00 
1  15 

First  dog  81  ;  each 
additional.  81-50. 
8   .50 

C  First  dog  81  ;   each  addi- 
i            tional.  81-50. 

$5  00 
6  15 

2  00 

Same 
f  83.00. 
1  Each 
<(  addi- 
i  tional 
I  $5.00. 
$2.00 

I  Same 

$1.00 

prop'ty 
SI  00 

1  00 
3  00 
3  00 
1  00 
5  15 

Same 
$1.00 

>  Same 

For  damages  to  sheep 
by  dogs. 
For  dam'ges  to  domes- 
tic animals  by  dogs. 

For  general  purposes, 
}>For  gen'l  purposes. 

For  general  purposes. 
±Jut  one   male  dog 
for    each    house    is 
exempt. 

f  For  dam'ges  to  sh'p 
\     by  dogs. 

For  general  uses. 

For  dam'ges  to  domes- 
tic animals. 
For  damages  to  sheep 
by  dogs. 
For  damages  to  sheep 
by  dogs. 
Goes  into  the  school 
fund. 
Goes  into  the   school 
fund. 
For  damages  to  sheep 
by  dogs. 

For  damages  to  sheep 
by  dogs, 
f  Towns  may  tax  85 
additional   to  the 
J      tax   provided    by 
}      law.   Proceeds  go 
to  pay  damages  to 
t     sheep  by  dogs. 

New  York  
Maryland  

Pennsylvania, 
\evacla    

Ohio 

Illinois  

Michigan  

Wisconsin  
No.  Carolina... 
Rhode  Island.. 
Virginia 

West  Virginia, 
New  Jersey  .  . 

Indiana  leaves  it  to  the  towns  to  vote  to  tax  or  not,  but  if 
they  tax,  the  proceeds  go  to  pay  damages  done  to  sheep  by 
dogs.  Georgia  alldws  a  dog  tax  to  be  imposed  by  constitu- 
tional provision,  but  we  do  not  find  any  law  among  their 
statutes  taxing  them.  The  average  amount  of  the  tax  upon 
each  dog  in  the  eighteen  states  named  is  $1.90.  We  recom- 


46  REPORT    OF    TAX    COMMISSION. 

mend  a  license  tax,  certain  and  uniform,  of  $1.00  on  male 
dogs  over  four  months  old  and  $2.00  on  females  over  that 
age  ;  the  proceeds  to  be  applied,  under  suitable  provisions  to 
prevent  fraudulent  claims,  to  pay  for  damages  done  by  dogs 
to  sheep. 

TAXATION  OF  MORTGAGES. 

\Ye  have  given  considerable  study  to  the  vexed  subject  of 
the  taxation  of  mortgages.  To  tax  or  not  to  tax  them  is  a 
many  sided  question  and  most  difficult  of  satisfactory  solu- 
tion. It  involves  the  whole  theory  and  practice  of  general 
property  taxation.  The  injustice  of  taxing  a  mortgage  is 
that  it  results  in  double  taxation.  If  the  real  property  mort- 
gaged is  taxed  and  the  debt  secured  by  it  is  taxed  also,  under 
our  system,  the  mortgagor  is  compelled,  often,  to  pay  a 
double  tax  because  the  lender  of  the  money,  the  mortgagee, 
may  and  usually  will  make  his  contract  to  cover  the  tax  he 
may  be  obliged  to  pay  on  the  mortgage  indebtedness,  and  the 
mortgaged  property  is  taxable  to  the  mortgagor.  This  liabil- 
ity to  double  taxation  extends  to  many  cases  where  no  money 
passes  and  the  mortgaged  property  is  the  only  property 
involved.  A  has  a  piece  of  land  worth  $1,000  ;  B  has  noth- 
ing, but  wishing  to  buy  A's  land,  A  conveys  it  to  him,  and 
receives  B's  note  for  $1,000  secured  by  a  mortgage  of  the 
land.  Under  our  system,  the  land  is  taxable  to  B  and  the 
mortgage  note  to  A,  thus  taxing  $2,000  in  value  where  but 
$1,000  exists. 

To  give  another  similar  illustration  :  A  owns  a  farm  worth 
$2,000.  B  has  $500  in  money.  Both  are  taxed  in  the  aggre- 
gate $2,500.  That  is  all  the  property  they  possess.  B  buys 
A's  farm  and  pays  him  the  $500  in  part  payment  and  a  promis- 
sory note,  secured  by  mortgage  of  the  farm,  for  $2,500.  No 
new  property  has  been  created,  yet  our  present  system  would 
tax  B  for  the  land  he  has  purchased  $3,000  and  A  foi  the 
debt  B  owes  him  $2,500,  making  $5,500  of  taxable  property. 
Under  such  a  system,  the  larger  the  amount  of  debts  and 


KEPORT    OF    TAX    COMMISSION.  47 

^mortgages,  the  richer  the  community.  "To  tax  both  prop- 
erty and  credits,  both  lender  and  borrower,  is  plainly  incor- 
rect in  principle  and  inequitable  in  practice,"  says  Amasa 
Walker,  author  of  "Science  of  Wealth,"  and  the  foregoing 
illustrations  of  frequent  instances  show  the  truth  of  the 
criticism. 

On  the  other  hand,  if  mortgages  are  not  taxed,  the  money 
lender  escapes  taxation  for  the  money  he  has  loaned  on  mort- 
gages altogether.  How  to  adjust  the  tax  so  that  exact  justice 
may  be  done  to  both  borrower  and  lender  and  to  prevent  the 
falling  of  all  the  taxes  upon  the  borrower  is  the  problem 
challenging  solution,  and  one  which  must  remain  without 
•absolute  settlement  until  law  shall  usurp  the  power  to  make 
contracts  between  borrower  and  lender,*  or  until  all  taxation 
shall  be  removed  from  intangible  property  and  choses  in 
action.  It  is  not  alone  the  relation  of  mortgagor  and  mort- 
gagee that  produces  the  injustice  of  double  taxation.  It 
inheres  in  the  whole  s}>tem  of  taxing  debts  and  securities 
-and  property  for  which  the  possessor  is  indebted.  It  touches 
the  interests  of  all  who  do  business,  is  peculiar  to  no  class, 
and  is  a  grievance  as  old  as  taxation  itself.  In  the  earlier 
-days  of  our  statehood,  it  was  little  felt,  but  in  the  multiform 
methods  of  doing  business  at  the  present  day,  it  is  oftener 
felt,  and  the  evasions,  subterfuges  and  frauds  practiced  to 
-avoid  taxes  upon  credits  and  securities,  are  the  chief  cause  of 
the  effort  everywhere  made  to  find  a  better  system.  It  is  a 
most  significant  fact,  and  one  which  speaks  forcibly  of  the 
impracticability  of  statutory  relief  from  double  taxation  in 
case  of  mortgages  that  there  has  been  so  little  accomplished 
in  any  state  to  remedy  it.  In  many  states,  as  in  our  own, 

*XOTB— Pennsylvania,  by  an  act  passed  at  the  last  session  of  its  legislature,  has  attempted 
to  control  the  contracts  between  lenders  and  borrowers.  Section  18  of  "An  Act  to  Provide 
Hovenue,"  enacts: 

"That  from  and  after  the  passage  of  this  act  it  shall  be  unlawful  for  any  person  or  persons, 
co-partnership,  unincorporated  association,  limited  partnership,  joint  stock  association  or  cor- 
poration whatsoeyer,  in  loaning  money  at  interest  to  any  person  or  persons,  whether  such 
•loans  be  secured  by  bond  and  mortgage,  or  otherwise,  to  lequire  the  person  or  persons  bor- 
rowing the  same  to  pay  the  tax  imposed  thereon  by  the  lirst  section  of  this  act ;  and  in  all  cases 
where  such  tax  shall  have  been  paid  by  the  borrorer  or  borrowers,  the  same  shall  be  deemed 
;and  considered  usury,  and  be  subject  to  the  laws  governing  the  same." 


48  REPORT    OF    TAX    COMMISSION. 

the  tax  payer  is  allowed  to  offset  against  debts  due  him  an 
equal  amount  of  his  indebtedness,  and  in  a  few  states  he  is 
allowed  to  offset  his  indebtedness  against  his  valuation  gen- 
erally. 

In  Massachusetts  and  Maryland,  the  legislatures  have 
undertaken  to  deal  with  the  subject  of  mortgage  taxation  r 
and  in  the  latter  state  mortgages  are  not  taxed.  In  Massa- 
chusetts, the  mortgagee  is  taxed  as  joint  owner  with  the- 
mortgagor  in  the  land  mortgaged  to  the  extent  of  his  inter- 
est. This  method  was  adopted  under  a  statute  enacted  in 
188 1.  and  has  proved  reasonably  satisfactory  in  practice.* 
The  mortgage  is  taxed  to  the  mortgagee  as  real  estate  to  the 

*XOTE. — This  method  is  very  highly  extolled  by  the  special  committee  011  taxation  of  the 
Boston  Executive  Business  Association  in  a  report  to  the  association  last  October.  The  asso- 
ciation embodies  the  leading  business  associations  of  Boston,  including  the  Chamber  of  Com- 
merce, Merchants'  Association,  Master  Builders'  Association,  Fruit  and  Produce  Exchange 
and  many  others.  On  the  subject  of  mortgage  taxation,  the  committee  say  : 

"In  one  thing  to-day  we  are  in  advance  of  many  states.  Since  1883  real  estate  has  been  re- 
lieved from  double  taxation.  It  is  regarded,  as  it  should  be,  the  property  of  the  parties  who 
have  a  deed  of  it,  whether  as  mortgagee  or  having  the  fee;  and  the  result  is,  as  you  all  know, 
that  the  party  who  holds  the  equity,  being  the  natural  husband  and  care-taker  of  the  property, 
by  agreement  with  the  mortgagee  assumes  the  payment  of  taxes,  and  gets  his  money  about 
the  tax  rate  less. 


igth  the  merit  of  this  reform  gave  it  the  victory,  although  it  was  nearly  a  seven  years' 
id  with  what  result  to-day?     We  hardly  know  a  person  to  whom  it  has  not  been  a 


"At  len| 
war!  Am 
real  gain,  so  universal  and  widespread  its  benefits. 

"Let  us  enumerate  some  of  them  : — 

"First.  Real  estate,  relieved  from  double  taxation,  has  become  one  of  the  most  popular  and 
profitable  of  investments,  and  year  bj*  year  increases  in  value. 

"Second.  The  rate  of  interest  upon'mortgages  has  fallen  to  so  reasonable  a  figure  that  no- 
body complains;  even  the  well-to-do  business  man  can  hardly  afford  not  to  have  a  mortgage 
upon  his  home,  for  present  methods  of  doing  business  require  so  much  capital  that  it  is  rare 
that  he  cannot  make  it  earn  more  than  four  or  four  and  a  half  percent  of  a  first-class  mortgage, 
and  the  poor  man,  Avho  used  to  be  so  victimized  by  the  money  lender,  even  on  his  small  lower- 
class  mortgage,  need  not  pay  over  six  per  cent. 

"  Third.  Massachusetts  mortgages  have  become  the  best  possible  investment  for  trust  funds, 
and  the  scanty  income  of  the  widow  and  orphan  from  this  source  is  not  required  to  be  divided 
with  the  town  or  city  in  taxes. 

Lastly,  And  this  result  please  note.  After  the  readjustment  to  the  new  order  of  things 
had  taken  place,  there  was  no  perceptible  increase  in  the  rate  of  taxation,  and  this  reform, 
which  puts  millions  into  the  pockets  of  the  people,  in  the  reduced  rates  of  inten-sts  upon  mort- 
gages, and  increased  value  of  real  estate,  to  all  appearances  costs  the  general  tax-payer 
nothing." 

To  this  Mr.  Thomas  Hill,  the  able  chairman  of  the  assessors  of  Boston,  replied  in  an  address 
to  the  association  last  January.  Among  other  things  he  said  : 

"We  all  admit  that  the  rate  of  interest  on  mortgages  has  fallen  since  the  enactment  of  the 
law  of  1881.  Two  years  before  that  law  went  into  effect  the  average  rate  of  interest  upon  the 
mortgages  of  all  parts  of  the  State  was  six  and  twelve  one-huudredths  per  cent.  After  seven 
years'  operation  the  records  show  that  the  mortgages  recorded  in  the  first  five  mouths  of  1889 
were  at  an  average  rate  of  five  and  thirty  one  hundredth?  per  cent,  a  difference  of  eighty-two 
one  hundredths  per  cent.  With  the  average  tax  of  the  State,  as  determined  by  its  tax' com- 
missioner, at  one  and  forty-seven  one  hundredths  per  cent,  clearly  the  borrower  has  not  re- 
ceived tho  whole  advantage  of  the  exemption,  unless  the  rates  of  interest  have  been  advancing 
during  the  last  decade.  That  can  hardly  be,  when  within  a  week  Boston  has  sold  its  three 
and  one  half  per  cents,  liable  to  taxation,  at  a  premium.  We  all  know  that  interest  has  receded 
largely  during  the  last  eight  years.  All  the  concession  that  lenders  of  money  upon  mortgages 
have  made  to  their  borrowers  they  have  been  compelled  to  make  by  the  laws  of  trade,  not  by 
those  of  the  State.  I  am  satisfied  that  were  the  laAvs  that  sustain  the  present  exemption  of 
mortgages  repealed  by  the  present  Legislature,  as  mortgages  fell  due,  the  lenders  would  take 
the  rate  fixed  by  the  money  markets  of  the  world,  and  pay  their  own  taxes ;  and  if  I  hoy  refused 
to  do  so,  foreign  capital  would  give  borrowers  all  they  required  at  that  rate." 


REPORT    OF   TAX    COMMISSION.  49 

amount  of  the  debt  due  him  upon  it,  and  the  mortgagor  is,  to 
that  extent,  relieved  from  tax,  as  he  is  taxed  only  for  so  much 
of  the  value  of  the  property  mortgaged  as  is  in  excess  of  the 
debt ;  thus  making  but  one  tax,  in  effect,  upon  the  whole  trans- 
action ;  the  note  being  free  of  tax.  Thus  the  lender  is  taxed 
for  the  money  loaned  in  the  form  of  a  tax  on  his  interest  in 
the  mortgaged  property  and  the  borrower  is  relieved  to  that 
extent.  It  is  easy  to  see  how,  under  this  system,  property 
escapes  taxation,  in  theory  at  least,  for  if  the  lender  retained 
his  money  and  the  borrower  his  land,  both  would  be  subject 
to  full  taxation.  But  would  the  money  be  found  for  taxation? 
It  is  also  apparent  that  the  lender's  facilities  for  shifting  the- 
burden  of  the  tax  he  is  liable  for  to  the  shoulders  of  his, 
debtor  by  extra  charges,  still  remains. 

On  the  whole,  however,  we  conclude  that  the  weight  of  the 
argument  is  in  favor  of  some  such  method  as  Massachusetts 
has  chosen,  as  compared  with  our  own,  and  we  have  incor- 
porated into  our  proposed  law  provisions  of  a  like  character. 
We  are  unable  to  devise  any  method  that  promises  better 
results.  » 

STREET    RAILROADS. 

The  total  amount  of  State  taxes  assessed  upon  the  street 
railroad  companies  last  year  was  $1,109.22.  The  rate  of 
taxation  is  so  small  as  to  be  hardly  worth  the  trouble  of 
assessing  and  collecting.  It  would  doubtless  be  a  low  esti- 
mate to  set  the  total  value  of  the  roads  yielding  this  amount 
of  revenue  to  the  State  at  $200,000.  Indeed,  one  road  alone, 
the  Portland  Horse  Railroad,  was  assessed  $1,029.60  of  the 
whole  amount  of  taxes  on  street  railroads,  leaving  but  $78.62 
for  three  others.  One  road  that  cost  about  $20,000,  whose 
stock  is  held  at  considerable  in  advance  of  par  and  which 
yields  handsome  dividends,  pays  a  tax  of  $9.48.  Another 
road  is  assessed  less  than  $1.00. 

The  rate  of  taxation  of  these  roads  is  one-tenth  of  one  per 
cent,  of  the  gross  receipts  when  they  do  not  exceed  $1,000  per 


50  REPORT    OF    TAX    COMMISSION. 

mile  and  one-tenth  of  one  per  cent,  increase  for  each  thousand 
or  fractional  part  thereof  additional.  These  roads  are  subject 
to  local  taxation  for  their  buildings,  lands  and  fixtures  outside 
of  their  located  right  of  way,  which  is  but  small,  and  to  no 
other  tax  whatever.  When  it  is  considered  that  these  street 
railroads  are  granted  the  valuable  franchise  of  a  right  of  way 
over  the  streets  of  villages  and  cities;  with  no  land  damages 
and  rights  of  way  to  pay  for,  and  often  subjecting  tax  payers 
who  have  to  pay  to  keep  the  streets  in  repair  and  safe  for 
travel,  to  various  annoyances,  it  would  seem  but  just  that 
they  should  be  subject  to  local  taxation  ;  that  the  towns  and 
cities  whose  streets  they  use  should,  at  least,  receive  a  tax 
from  them.  Why  should  the  $50,000  more  or  less,  which  is 
invested  in  a  business  which  runs  cars  through  the  streets  of 
town  be  practically  exempt  from  taxation,  while  the  property 
of  the  manufacturer,  the  merchant,  the  farmer,  who  is  obliged 
to  make  use  of  so  much  of  the  streets  as  the  railroads  leave 
for  his  use,  is  fully  taxed? 

It  is  urged  by  those  who  are  interested  in  these  enterprises 
that  they  are  a  public  convenience  and  are  as  yet  but  tenta- 
tive and  in  some  cases  do  not  pay.  This  may  be  said  of  about 
every  business  operation  that  is  undertaken.  The  right  of 
taxation  cannot  be  made  to  depend  entirely  upon  the  success 
of  a  business  enterprise.  The  merchant,  the  livery  stable 
keeper,  the  hack  and  coach  proprietor,  the  farmer,  in  fact  all 
other  classes  of  business-men  have  to  bear  their  share  of  the 
public  burdens,  or  are  taxable  for  their  possessions,  whether 
successful  or  otherwise. 

It  has  seemed  to  your  Commissioners,  therefore,  that  these 
corporations  should  not  only  be  taxed  more  than  they  are  now 
taxed,  but  that  it  should  be  a  local  tax,  that  the  towns  whose 
streets  are  yielded  to  their  use,  may  receive  such  benefit  or 
remuneration  as  a  just  tax  on  the  value  of  the  property  of  the 
corporation  will  give  them.  Our  view  is  embodied  in  the  law 
herewith  presented.  In  cases  where  the  street  railroad 
extends  into  two  or  more  towns,  the  act  provides  for  a  confer- 


REPORT    OF   TAX    COMMISSION.  51 

ence  of  the  boards  of  assessors  of  the  several  towns  whose 
roads  are  so  used,  to  determine  the  value  per  mile  of  the 
entire  road,  track  and,  in  c^se  of  electric  roads,  the  poles  and 
wires.  So  much  of  the  value  thus  ascertained  of  the  track, 
poles  and  wires  as  is  located  in  each  town,  is  taxed  therein. 
The  buildings,  horses,  cars  and  other  property  being  taxable 
where  located  or  usually  kept  on  the  first  day  of  April.  The 
corporation  is  relieved  of  all  other  taxation  on  its  property, 
franchises  and  stock,  excepting  the  small  portion  of  the  tax 
assessed  on  these  roads  towards  the  salaries  and  expenses  of 
the  railroad  commissioners,  and  that  the  act  provides  shall  be 
deducted  from  the  local  tax  before  payment  to  the  town. 


PUBLIC    STREETS    AND    PRIVATE    CORPORATIONS. 

The  subject  of  the  use  of  the  public  streets  by  private  cor- 
porations is  becoming  yearly  of  more  importance  in  this 
country,  by  reason  of  the  rapid  increase  of  wires,  poles  and 
street  railways.  While  the  streets  of  Maine  cities  and  vil- 
lages have  not  yet,  to  a  very  cumbrous  extent,  been  taken  for 
the  use  of  corporations,  laws  cannot  be  too  early  enacted  to 
secure  to  towns  some  returns  for  the  valuable  rights  and 
privileges  which  are  secured  through  every  charter,  or  incor- 
poration under  the  general  law,  in  the  best  public  streets,  for 
railways,  telephones,  telegraphs  and  electric  companies.  The 
city  council  of  Boston  has  taken  hold  of  the  subject  in  that 
city.  A  committee  has  recently  presented  an  able  report 
containing  much  valuable  data  relating  to  the  experience  and 
practice  of  other  cities  in  this  and  other  countries  in  dealing 
with  these  corporations.  We  give  herewith  some  extracts 
from  this  report  as  being  applicable  to  Maine  cities  as  well  as 
to  Boston,  and  because  they  contain  valuable  suggestions 
upon  a  subject  which  the  legislature  will  be  obliged  before 
long  to  deal  with.  The  committee  say  : 

In  almost  every  one  of  these  cities,  outside  of  our  own,  the 
corporations  are  required  to  make  some  direct  return  to  the 
city  for  the  privileges  the}*  enjoy  in  the  public  streets.  This 


52  REPORT    OF    TAX    COMMISSION. 

custom  is  so  general  that  the  claim  that  it  would  impose  a. 
burden  upon  corporations  so  serious  as  to  impair  their  useful- 
ness does  not  seem  to  have  any  force,  and  it  is  difficult  to 
understand  why  such  a  result  would  be  brought  about  in  this 
city,  or  why  the  effect  of  such  a  system  upon  corporations- 
should  be  any  different  in  Boston  than  other  cities. 

"It  will  be  observed,  upon  examining  the  communications, 
that  the  local  telephone  companies  of  Amsterdam  pay  to  the 
city,  annually,  21 J  per  cent,  of  their  gross  receipts,  in  St. 
Louis,  five  per  cent,  of  gross  receipts,  and  in  Philadelphia, 
one  dollar  annually  for  each  old  pole  and  five  dollars  for  each 
new  pole,  used  for  the  support  of  wires.  Street  railway  com- 
panies also  pay  large  amounts  for  their  locations.  In  Amster- 
dam they  pay  5  per  cent,  of  gross  receipts  annually  ;  in 
Baltimore,  9  per  cent,  of  gross  receipts,  with  an  additional 
tax  on  each  car ;  in  Newark,  2J  per  cent,  of  capital  stock  ; 
in  Providence,  a  certain  fixed  sum  ;  in  St.  Louis,  a  percentage 
of  gross  receipts  on  a  sliding  scale,  while  in  New  York  state 
all  street  railway  franchises  are  now  sold  at  auction  for  the 
highest  offer  above  a  certain  fixed  percentage  of  gross  receipts. 

"While  it  seems  to  your  committee  most  desirable  that 
some  return  should  be  secured  to  the  city  from  the  corpora- 
tions who  hold  and  exercise  these  valuable  and  exclusive  rights 
in  the  public  streets,  they  appreciate  the  difficulty  of  intro- 
ducing any  system  that  will  be  applicable  to  all  corporations 
alike,  and  will  operate  fairly  in  every  case,  without  working 
an  injustice  to  what  are  undoubtedly  looked  upon  as  vested 
rights.  The  method  most  generally  adopted  is  to  require  the 
payment  to  the  city  of  a  percentage  of  the  gross  receipts. 
This  method  may  work  to  advantage  in  many  instances,  but 
in  the  case  of  a  street  railway,  telephone  or  electric  light 
company,  having  its  tracks  or  lines  in  different  municipalities, 
it  would  be  difficult  to  adjust  the  rate  proportionately.  In 
addition  to  this,  it  is  not  always  possible  to  ascertain  what  a 
company's  receipts  actualljr  are.  The  special  tax  upon  each 
car  of  a  street  railway  company,  such  as  is  levied  in  Baltimore, 
might  tend  to  deter  the  company  from  furnishing  adequate 
and  proper  accommodations  for  the  community,  especially  if 
the  fee,  as  in  Baltimore,  is  greater  for  a  new  car  than  for  an 
old  one.  The  system  is  also  open  to  objection  as  not  being 
applicable  to  all  corporations. 

"As  regards  the  auction  system  which  has  been  adopted  in 
New  York,  your  committee  are  of  the  opinion  that  it  would 
not  operate  satisfactorily  in  Boston  under  the  present  state  of 
affairs,  particularly  in  reference  to  granting  street  railway 


REPORT    OF    TAX    COMMISSION.  53 

locutions.  If  a  street  railway  extension  became  necessary, 
and  the  proposed  new  location  was  offered  at  auction,  a  sys 
tern  of  competition  would  at  once  be  introduced  in  opposition 
to  the  present  system  of  monopoly,  which  has  received  the 
sanction  of  the  Legislature.  A  further  objection  to  the  sys- 
tem appears  to  be  that  it  would  tend  to  prevent  a  judicious 
and  necessary  railroad  extension,  on  account  of  the  reluc- 
tance which  a  corporation  would  evince  to  risk  its  rights 
upon  the  uncertainty  of  a  public  auction,  Your  committee 
are,  however,  favorably  impressed  with  the  method  adopted 
in  the  city  of  Philadelphia,  whereby  a  special  annual  fee  is 
paid  to  the  city  for  each  pole  belonging  to  the  telegraph  and 
telephone  companies.  The  principle  which  underlies  this 
system  requires  each  corporation  to  pay  a  fixed  sum  for  their 
special  use  of  the  public  streets,  and  this  sum  is  precisely 
proportionate  to  the  extent  of  such  use.  The  chief  advan- 
tage of  this  system  arises  from  the  fact  that  it  can  be  applied 
with  equal  fairness  to  each  and  every  corporation  enjoying 
the  privileges  granted  them  by  the  city.  Thus,  a  street  rail- 
way company  might  be  required  to  pay  the  city  a  fixed  sum 
for  each  mile  of  track  located  in  the  streets  ;  telephone  and 
other  companies,  operating  lines  of  electric  wires,  to  pay  so 
much  for  each  pole  erected,  and  companies  making  use  ot 
pipes  and  conduits  underground,  a  fixed  sum  per  mile  of 
pipe,  etc. 

••As  it  appears  that  the  city  at  present  has  not  the  authority 
to  secure  a  return  from  corporations  to  whom  privileges  are 
granted  for  use  of  the  streets,  it  will  be  necessary  to  apply 
to  the  Legislature  for  further  power,  and  the  committee 
accordingly  recommend  the  passage  of  the  following  order  : 


,  That  His  Honor  the  Mayor  OH  hereby  ivqm'sted  to  petition 
the  General  C'»nrt.  at  it<  next  session,  f«»r  the  passage  or'  an  act  authoriz- 
ing cities  and  towns  to  prescribe  terms  and  conditions  for  the  use  of  their 
streets  hy  privat^  corporations." 


EXEMPTIONS. 

But  little  change  is  recommended  in  relation  to  exemptions 
from  taxation.  Ordinarily  exemptions  benefit  most  those  who 
tire  best  able  to  pay  taxes,  because  they  are  usually  the  per- 
sons who  possess  to  the  fullest  extent  such  property  as  is  sub- 
ject to  ••xemption.  An  exemption  of  household  furniture  to 
the  value  of  $300  to  a  family  instead  of  $200  as  in  the  present 
law,  is  recommended,  because  it  is  to  be  presumed  that  if  the 


54  REPORT    OF    TAX    COMMISSION. 

proposed  system  is  adopted  and  inventories  are  returned  on 
oath  to  the  assessors,  the  wealthier  householders  will  list  con- 
siderable furniture  value  in  excess  of  $300,  whereas  under  the 
present  system  it  is  very  rare  that  any  household  furniture  is 
valued  at  all  for  taxation.  This  will  be  a  direct  relief  to  peo- 
ple in  poor  or  moderate  circumstances.  It  is  very  unusual 
also,  under  our  present  law,  that  books — the  family  library- 
is  taxed.  Everybody  will  recognize  the  propriety  of  exempt- 
ing a  moderate  value  in  books,  to  a  family,  although  our 
present  law  exempts  none.  All  are  taxable,  yet  the  practice 
is  not  to  tax  them.  If,  however,  a  person  possesses  a  valuable 
library,  we  see  no  reason  why  it  should  not  be  subject  to 
taxation  as  well  as  his  musical  instruments  or  carriages. 
Large  libraries  and  valuable  books  are  usually  owned  by  peo- 
ple able  to  pay  taxes  on  them,  while  the  small  collection, 
such  as  may  be  found  or  should  be  in  the  average  family, 
ought  not  to  be  taxed.  It  is,  therefore,  proposed  to  exempt 
family  libraries  to  the  value  of  $100.  In  many  states,  the 
exemptions  of  family  libraries  are  from  $100  to  $500  in  value. 
The  act  also  exempts  the  beds,  bedding  and  kitchen  utensils 
requisite  for  each  family.  Mules,  horses  and  neat  cattle  less 
than  two  years  old  are  also  exempt  under  the  proposed  act. 
The  present  law  makes  them  taxable  if  over  six  months  old. 

These  extensions  of  exemptions,  we  believe  to  be  proper 
and  in  the  interest  of  the  farmers  and  other  laborers  of  mod- 
erate means. 


WHERE    PERSONAL    PROPERTY    IS    TAXABLE. 

A  good  deal  of  property  escapes  taxation  by  reason  of  the 
difficulty  in  understanding  the  present  provision  relating  to 
the  taxation  of  personal  property  employed  in  trade,  in  build- 
ing and  the  like.  It  is  claimed  that  much  timber,  logs,  wood, 
poles  and  the  like,  in  transit  from  the  forests,  escapes  taxa- 
tion because  having  no  place  of  taxation  definitely  fixed  by 
statute.  The  present  law  provides  that  when  any  owner  of  real 
estate  notifies  the  assessors  that  any  part  of  the  wood,  bark 


REPORT    OF    TAX    COMMISSION.  55 

and  timber  standing  thereon  has  been  sold  by  contract  in  writ- 
ing and  exhibits  to  them  proper  evidence,  they  shall  assess  such 
wood,  bark  and  timber  to  the  purchaser.  The  proposed  law 
makes  such  property,  while  in  transit  or  lodged  upon  the  banks 
of  streams  and  lakes,  taxable  to  the  owner  in  the  town  of  his 
residence,  hence  must  be  included  in  his  return  to  the  asses- 
sors, if  it  is  not  assessed  under  the  provision  alluded  to. 
Such  property  stored  and  piled  in  towns  other  than  where 
the  owner  resides  is  taxable  in  the  town  where  found.  This 
may  not  appear  just  in  all  cases,  yet  it  makes  clear  what  is 
now  obscure  and  will  at  least  make  such  property  pay  its 
share  of  taxes  somewhere. 


STATE    TAXATION. 

It  is  believed  by  many  that  it  may  be  possible  to  assess 
upon  corporations  an  amount  sufficient  for  State  expenses, 
and  thus  the  necessity  for  a  property  tax  for  State  purposes 
be  avoided.  If  this  were  possible  within  the  limit  of  just 
taxation  of  corporations,  it  would,  to  a  considerable  extent, 
relieve  the  general  tax  burden  of  the  people.  But  there  are 
other  questions,  besides  that  of  a  slight  decrease  of  taxation, 
to  be  considered  in  this  connection.  Would  it  be  a  wise  and 
salutary  thing  to  sever  the  financial  ligament  which  now  closely 
unites  the  State  government  with  the  town,  and  in  fact  with 
every  individual?  Would  it  be  beneficial  to  the  people  at 
large  to  have  the  power  and  influence  of  corporations  so  im- 
mensely extended  as  they  would  be  in  case  the  State  were 
dependent  alone  on  them  for  its  revenues? 

It  appears  to  us  that  such  a  policy  would  not  be  wise  and 
that  to  resort  to  it  would  be  to  sacrifice  an  important  principle, 
a  paternal  and  unifying  element  of  state  government,  at  a 
very  cheap  price.  There  is  little  danger,  however,  that  such 
a  policy  will  be  adopted  in  Maine  for  a  long  time,  as  it  would 
not  be  possible,  with  any  degree  of  justice,  to  levy  all  our 
State  taxes  upon  corporations,  especially  if  our  s}'stem  of  dis- 


56  REPORT    OF    TAX    COMMISSION. 

tributions  to  towns  for  school  and  other  purposes  is  to  be 
continued. 

The  average  amount  annually  derived  by  the  State  from 
property  taxes,  from  1880  to  1890,  inclusive,  was  $853,- 
192.80.  The  assessments  were  as  follows  : 

1880  5  mills  per  dollar,  $1,124,261   27 

1881  4J  mills  per  dollar,  1,063,529  91 

1882  4£     "         "  1,063,529  91 

1883  4       "         "  945,430  92 

1884  4       "  945,430  92 

1885  3f     "         "  886,399   l« 

1886  3f     "          "  886,399     8 

1887  2|     "         «  649,487   11 

1888  2f     "         "  649,487   11 

1889  2J     "  649,487   11 

1890  2i     "  531,697   17 
This  shows  a  very  gratifying  and  steady  reduction  in  the 

amount  of  property  taxes  for  which  the  State  annually  calls 
on  the  people,  and  we  are  very  confident  that  the  levy  will 
be  further  largely  reduced  if  the  legislature  shall  adopt  the 
measures  for  additional  sources  of  revenue  herewith  proposed. 
If,  however,  it  shall  be  found  that  in  the  increase  of  revenues 
to  the  State  and  the  decreasing  demands  of  the  treasury,  the 
need  of  a  property  tax  shall  be  reduced  materially  from  the 
present  rate  of  two  and  a  quarter  mills  on  the  dollar,  we  trust 
the  legislature  in  its  wisdom  will  seek  to  reduce  general 
taxation  rather  through  the  distribution  system  than  by  mak- 
ing the  State  independent  of  the  towns  and  dependent  wholly, 
or  nearly  so,  on  the  corporations. 

On  this  subject  Chief  Justice  Marshall  said:  "The  only 
security  against  the  abuse  of  the  taxing  power  is  in  the  struc- 
ture of  the  government  itself.  In  imposing  the  tax  the  legis- 
lature acts  upon  its  constituents.  This  is,  in  general,  a 
sufficient  security  against  erroneous  and  oppressive  taxation. 
The  people  of  a  state,  therefore,  give  to  their  government 
the  right  of  taxing  themselves  and  their  property  :  and  as 


REPORT    OF    TAX    COMMISSION.  57 

the  exigencies  of  government  cannot  be  limited,  they  pre- 
scribe no  limit  to  the  exercise  of  this  right,  resting  confi- 
dently on  the  influence  of  the  legislature,  and  on  the 
influence  of  the  constituents  over  the  representatives  to  guard 
them  against  abuse."  Again  he  said:  "The  interest,  wis- 
dom, justice  of  the  representative  body  and  its  relation  with 
its  constituents,  furnish  the  only  security  against  unjust  and 
excessive  taxation,  as  well  as  against  unwise  legislation  gen- 
erally." But  how  would  it  be  in  case  all  the  expenditures  of 
the  State,  for  which  the  legislature  is  called  upon  to  provide, 
is  derived  from  corporations,  and  none  from  a  general  levy 
upon  the  property  of  the  people  at  large?  Would  not  that 
'"only  security"  against  unjut-t  taxation  and  the  abuse  of  the 
taxing  power,  which  the  eminent  jurist  said  depends  on  the 
relations  of  the  legislative  body  with  its  constituents,  be,  in 
^a  great  measure,  wanting? 

If  it  were  not  for  the  system  of  distribution,  which  is  so 
beneficial  to  a  large  number  of  towns,  and  the  reliance  of 
the  school  system  in  many  sections,  the  State  might  readily, 
if  it  were  desirable,  soon  obtain  sufficient  revenue  for  its 
uses  without  taxing  real  estate,  and  even  without  new 
sources.  The  taxes  levied  by  the  State  on  property  this 
year  is  $531,697.17.  The  amount  returned  to  towns  will  be, 
approximately,  under  the  various  laws  requiring  distribution, 
$400,000,  leaving  less  than  $140,000  for  purely  State  uses. 
It  should  not  be  forgotten,  when  the  question  of  State  taxa- 
tion is  considered,  that  more  than  half  the  amount  levied  by 
the  State  on  property  flows  back  again  for  the  direct  benefit 
of  the  people. 

The  new  direct  sources  of  state  revenues  under  the  pro- 
posed law  are:  The  taxation  of  collateral  inheritances; 
increase  in  railroad  taxes  by  removing  the  three-and-a-quarter 
per  cent,  limit  ;  the  taxation  of  sleeping  car  companies  ;  the 
taxation  of  telephonic  instruments  leased  or  royalty-paying ; 
the  taxation  of  insurance  and  guaranty  companies  on  gross 
instead  of  net  premiums  ;  taxation  of  foreign  and  unlicensed 
insurance  companies  :  taxation  of  accumulations  of  savings 


58  REPORT    OF    TAX    COMMISSION. 

banks;  taxation  of  trust  and  loan  associations;  taxation  of 
corporate  franchises  ;  tax  on  enrollment  and  organizations  of 
corporations,  and  taxes  on  private  and  special  acts  of  legisla- 
tion. The  sums  which  may  be  reasonably  expected  from  these 
sources,  under  a  system  administered  by  an  efficient  board  of 
state  assessors,  in  addition  to  the  amount  to  be  derived  from 
present  sources,  will,  we  believe,  be  quite  large.  But  it  is 
from  the  increase  of  taxable  property  which  will  be  brought 
to  light  by  the  system  proposed,  that  we  most  confidently 
expect  relief  will  be  found  for  the  general  tax  payer;  in  the 
new  and  imperative  provisions  which  are  intended  to  unmask 
the  property  of  the  dishonest,  defeat  the  cunning  of  the  evader, 
lessen  the  burden  of  the  upright  citizen  and  stimulate  the 
fidelity  of  tax  officers. 

The  average  rate  of  taxation  for  all  purposes  throughout 
the  State  for  1889  was  one  and  seventy-one  hundredths  per 
cent,  on  a  valuation  which  in  many  towns  was  much  below  a 
"just  value."  We  believe  that,  under  the  system  proposed,, 
the  annual  levy  need  not  exceed  an  average  of  one  per  cent. 

COLLATERAL    INHERITANCES. 

We  have  embraced  in  the  system  which  we  recommend  at 
tax  on  collateral  inheritances  or  property  which  goes  by 
bequest  or  succession,  or  by  deed  or  gift,  to  take  effect  after 
the  death  of  the  grantor,  to  persons  not  lineally  related  to 
the  decedent.  This  tax  is  imposed  in  several  states  of  this 
country  and  has  long  been  a  familiar  source  of  revenue  in 
several  European  countries.  It  has  been  strongly  urged  upon, 
us  by  many  leading  citizens  of  the  State,  and  we  have  made  a 
careful  examination  of  the  laws  imposing  such  taxes  in  the 
several  states  adopting  them,  their  practical  operation  and  the 
decisions  of  the  courts  touching  their  constitutionality.  We 
have  not  thought  it  advisable  to  include  direct  inheritances 
although  that,  with  a  considerable  exemption  allowance,  is 
strongly  recommended  by  many.  A  tax  upon  collateral 
inheritances  lays  no  burden  upon  common  and  natural  sue- 


REPORT    OF    TAX    COMMISSION. 


ct'<>ions,  such  as  from  parent  to  child,  or  from  child  to  parent. 
It  reaches  such  property  as  through  the  permission  and  pro- 
tection of  the  government,  only,  goes  into  the  possession  of 
persons  or  corporations  who  have  had  no  hand  in  earning  it. 
It  is  so  given  by  statute  and  not  by  right,  and  it  would  seem, 
as  remarked  by  the  able  special  tax  commission  of  Con- 
necticut, which  included  several  professors  of  Yale  Law 
School,  in  their  report  to  the  legislature  of  that  state  in  1887, 
that  "the  gift  made  by  law  may  be  properly  taxed  by  law." 
It  is  an  income  without  labor  on  the  part  of  the  receiver, 
property  transferred  by  the  assistance  and  protection  of  gov- 
ernment from  the  dead  to  the  living  who  has  no  proprietary 
rights  in  it.  A  tax  of  this  kind  is  easily  collectable  which 
may  also  be  urged  as  a  reason  for  it.  Questions  of  the  con- 
stitutionality of  special  inheritance  tax  laws  have  arisen  in 
every  state  where  such  laws  have  been  enacted,  but  they  have 
been  sustained  in  every  case  excepting  in  New  Hampshire, 
where  a  law  taxing  all  estates,  settled  in  probate  courts  of  the 
state,  one  per  cent,  on  their  value  and  excepting  only  property 
passing  by  will  or  by  law  to  the  "husband  or  wife,  children 
or  grandchildren"  of  the  deceased,  was  declared  to  be  repug- 
nant to  that  provision  in  the  New  Hampshire  Bill  of  Rights 
which  limits  the  taxing  power  of  the  state  to  "proportional 
and  reasonable  assessments,  rates  and  taxes  upon  all  the 
inhabitants  and  residents  within  the  state  and  upon  the  estates 
within  the  same."  In  the  reasoning  of  the  court  in  this  decision, 
it  seems  to  be  conceded  that  if  the  uniformity  of  taxation 
required  by  the  Constitution  applied  to  property  only,  and 
not  to  inhabitants,  the  law  would  not  have  been  unconstitu- 
tional, for  in  referring  to  decisions  of  the  Court  of  Appeals  of 
Maryland  and  of  Virginia,  where  similar  questions  were  raised 
and  overruled,  the  New  Hampshire  Court  say  :  "There  is  in 
that  state  (Virginia)  no  constitutional  prohibition  against 
taxing  a  civil  right  or  privilege,  or  forbidding  a  discrimina- 
tion between  lineal  and  collateral  inheritances,  because  the 
requirement  of  uniformity  applies  to  property  only,"  and  that, 


<60  REPORT    OF    TAX    COMMISSION. 

while  the  Maryland  Constitution  provided  "for  a  uniform 
mode  of  taxation  on  property,  it  was  not  the  purpose  of  the 
framers  of  the  Constitution  to  prohibit  any  other  species  of 
taxation,  hut  to  leave  to  the  legislature  the  power  to  impose 
such  other  taxes  as  the  necessities  of  the  government  might 
require."  In  Virginia,  the  law  was  sustained  as  not  imposing 
a  tax  strictly  upon  property,  but  upon  a  civil  right  or  privi- 
lege. As  our  state  constitutional  provision  granting  the 
power  of  taxation,  applies  only  to  property  and  is  more 
nearly  in  accord  with  the  provisions  in  the  constitutions  of 
Virginia  and  Maryland,  than  it  is  with  that  of  the  New  Hamp- 
shire Constitution,  which  requires  taxes  to  be  apportioned 
equally  among  the  inhabitants  as  well,  we  do  not  apprehend 
that  a  collateral  inheritance  tax  being  of  the  nature  of  a  tax 
upon  "a  civil  right  or  privilege,"  will  be  held  to  be  objec- 
tionable on  the  ground  of  unconstitutionality.  The  question 
.has  been  recently  considered  by  the  Xew  York  Court  of 
Appeals  iu  the  matter  of  McPherson,  N.  Y.  Reports,  306, 
where  tl  e  court  upheld  the  constitutionality  of  a  law  impos- 
ing "taxes  upon  gifts,  legacies  and  collateral  inheritances  in 
certain  cases."  The  court  there  say;  "It  has  been  held  in 
several  states  where  constitutional  provisions  required  that 
property  taxes  should  be  equal  and  uniform,  that  such  pro- 
visions had  reference  only  to  general,  annually  recurring 
taxes  upon  property  generally,  and  not  to  special  taxes  upon 
privileges  or  special  or  limited  kinds  of  property." 

The  Connecticut  legislature,  at  its  last  session,  passed  a 
law  taxing  collateral  inheritances,  similar  to  the  one  embodied 
in  the  act  herewith  submitted,  after  two  years  of  reflection 
iipon  the  report  of  the  1a\  commission  which  recommended 
it.  As  to  the  propriety  of  such  a  tax,  the  Hon.  Albert  W. 
Paine,  in  his  report  as  Tax  Commissioner,  made  to  our  legis- 
lature, session  of  1874,  said  :  "Where  property  is  so  situ- 
ated as  to  pass  to  a  new  owner,  who  has  had  no  agency  in  its 
earning,  it  would  seem  to  be  only  just  and  reasonable  that  a 
small  duty  be  paid  to  the  state  whose  laws  afford  the  passage." 
We  believe  such  will  be  the  general  opinion  of  the  people. 


REPORT    OF    TAX    COMMISSION.  61 

The  Comptroller  of  the  state  of  New  York  in  his  last  report 
to  the  legislature  of  that  state,  speaks  of  the  inheritance  tax 
law,  which  was  passed  there  in  1885,  as  "a  wise  and  just 
measure"  and  observes:  "Under  the  law  the  immediate 
members  of  a  person's  family  and  those  most  equitably 
entitled  to  share  in  the  property  of  a  decedent  are  exempted 
from  the  tax  prescribed  ;  and  only  those  gifts  or  shares  of  a 
decedent's  property  of  the  value  of  $500,  or  upwards,  re- 
ceived by  collateral  relatives,  who  ordinarily  have  no  equitable 
claim  upon  the  bounty  of  the  testator  or  intestate,  are  liable 
to  the  tax  of  five  per  cent.  Such  beneficiaries  can  well  afford 
to  pay  a  small  tribute  to  the  state,  for  if  it  were  not  for  the 
wise  and  humane  laws  that  the  state  has  devised  for  their 
benefit  and  protection,  they  might  not  be  entitled  to  receive 
the  gifts  upon  which  the  small  tax  is  imposed.  Small  estates 
pay  very  little  or  no  tax.  It  is  the  large  and  wealthy  estates 
that  pay  considerable  amounts  into  the  treasury  for  the  bene- 
fit of  the  whole  people." 

A  similar  law  ha<  been  upheld  in  North  Carolina  whose 
Constitution  requires  that  all  property  shall  be  uniformly 
taxed  and  which  limits  the  rate  of  state  tax  to  two-thirds  of 
one  per  cent.  In  the  case  of  Fallen  vs.  The  Commissioners 
of  Wake  County,  (66  N.  C.  Reports,  361),  the  Court  say  r 
"Undoubtedly,  if  the  tax  in  question  must  necessarily  be 
regarded  as  a  tax  on  property,  the  objection  would  be  irre- 
sistible, since  this  property  is  not  only  taxed  uniformly  with 
other  property,  but  is  subjected  to  taxation  as  a  legacy  in 
addition.  But  we  do  not  regard  the  tax  in  question  as  a  tax 
on  property,  but  rather  as  a  tax  imposed  on  the  succession, 
on  the  right  of  the  legatee  to  take  under  the  will  or  of  a  col- 
lateral distribution  in  case  of  the  intestacy. 
Neither  can  it  be  held  to  be  a  tax  on  property  merely  because 
the  amount  of  the  tax  is  measured  by  the  value  of  the  prop- 
erty. The  legislature  may  destroy  the  right  of  gift  by  will 
altogether — may  it  not  regulate  it  and  impose  conditions  on- 
its  exercise?" 


62  REPORT    OF    TAX    COMMISSION. 

Judge  (Jooley  says,  (On  Taxation,  p.  392),  succession  to  an 
inheritance  may  he  taxed  as  a  privilege,  notwithstanding  the 
property  of  the  estate  is  taxed  and  taxes  are  required  by  the 
constitution  of  the  state  to  he  uniform. 

See  also  Hilliard  on  Law  of  Taxation,  Ch.  V.,  §  2. 

Such  a  tax  was  strongly  urged  upon  the  legislature  by 
Governor  Plaisted  in  his  address  at  the  beginning  of  the  ses- 
sion of  1881,  in  these  words: 

"As  Jill  property  should  hear  its  just  and  equal  proportion 
of  taxation,  it  would  seem  but  reasonable  that  all  legacies  and 
inheritances  should  not  go  untaxed.  The  propriety  of  an 
inheritance  tax  distinguishing  between  lineal  and  collateral 
inheritance,  is  approved  by  the  soundest  political  encono- 
mists  ;  nor  can  there  be  any  doubt  of  the  legal  and  moral 
right  of  the  legislature  to  impose  it  The  conditions  that 
make  such  a  tax  just  and  desirable,  are  that  a  large  amount 
of  personal  property  that  passes  by  bequest — particularly 
government  bonds — will  escape  taxation  altogether,  unless 
taxed  when  it  comes  to  the  light  in  its  transfer  from  the  dead 
to  the  living.  Besides,  it  would  seem  but  just  and  proper 
that  this  class  of  property  should  be  made  to  contribute  to 
the  cost  of  maintaining  courts  of  probate  and  of  probate  rec- 
ords, established  and  maintained  for  the  sole  benefit  thereof. 
Then,  again,  the  expenses  attending  the  collection  of  this  tax 
would  be  but  trifling,  and  the  burden  of  the  tax  would  fall 
lightly  upon  those  who  pay  it,  because  it  would  be  deducted 
from  what  was  never  in  their  possession.  The  state  of  Penn- 
sylvania derives  an  annual  income  of  over  $300,000  from  col- 
lateral inheritances  and  bequests,  and  in  addition  thereto  a 
revenue  of  over  $100,000  from  a  tax  on  wills,  writs,  deeds, 
etc." 

The  Maryland  law  taxes  collateral  inheritances,  in  excess 
of  $500,  two  and  a  half  per  cent,  which  yields  to  the  state 
about  $45,000  a  year.  The  amount  of  this  tax  in  1887  was 
$45,594. 

In  a  recent  report  of  a  Special  Committee  on  taxation  of  the 
Boston  Executive  Business  Association,  the  Committee  thus 
forcibly  recommend  a  tax  of  this  kind  : 

One  of  the  things,  then,  upon  which  your  committee  is 
agreed  is  to  recommend  a  state  tax,  known  in  other  states  as 
the  "Collateral  Inheritance  Tax."  Its  name  tells  the  story. 


REPORT    OF    TAX    COMMISSION.  1)3 

It  does  not  reach  the  direct  heirs,  such  as  wife,  children, 
parents,  or  even  brothers  and  sisters,  only  collateral  benefici- 
aries, persons  and  objects,  who  have  no  claim  upon  the  estate, 
and  get  what  they  receive  from  the  generosity  of  the  donor, 
and  the  favoring  circumstances  of  our  law.  What  could  be 
more  reasonable  than  such  tax  in  the  final  distribution  of 
estates?  Who  should  complain?  Not  the  giver,  for,  if  dl  — 
.agreeable  to  him,  he  may  make  his  gifts  during  his  lifetime. 
Not  the  receiver,  for  all  should  be  to  him  an  occasion  of 
thankfulness.  Would  any  of  us  object  to  such  a  tax  for  our- 
selves or  for  any  charity  with  which  we  are  identified?  It  is 
idle  to  reply  that  such  a  tax  will  be  evaded  by  the  testator. 
The  fact*  in  otlter  nWte*  do  not  xhoiv  it,  and  it  would  seem  as 
if  any  reasonable  man  would,  in  disposing  of  any  considerable 
porlion  of  his  estate  to  outside  parties  and  interest,  feel  that 
41  five  pi  r  cent,  tax  thereon,  paid  to  the  state  for  public  uses, 
might,  indeed,  be  a  very  becoming  and  satisfactory  way  of 
meeting  any  particular  default  in  taxation,  or  other  source  of 
obligation  to  the  community  and  its  laws. 

This  tax  realized  to  the  state  of  Pennsylvania — Collateral 
inheritance — 

In  1888  over $700,000 

In  New  York  in  1887 551,71ft 

In  New  York  in  1888 73K,000 

Estimated  in  1889     .1,000,000 

While  Maine  bears  no  comparison  with  these  large  and 
wealthy  states,  yet  we  think  a  considerable  revenue  may  be 
realized  here  from  such  a  law  if  properly  enforced.  A  very 
careful  estimate  made  by  the  Connecticut  Tax  Commissioners 
of  the  probable  annual  income  from  the  collateral  inheritance 
tax  law  of  three  per  cent.,  recommended  for  that  state,  based 
on  inheritable  property  valued  at  $810,000,000,  and  an  aggre- 
gate of  collateral  successions  amounting  to  $1,780,516  was 
$54,415.  If  Maine  possesses  half  as  much,  with  a  tax  of  two 
and  a  half  per  cent.,  there  ought  to  be  realized  at  least 
$20,000. 


64  REPORT    OF    TAX    COMMISSION. 

CORPORATE    FRANCHISE    AND    ORGANIZATION    TAXES. 

There  is  no  state,  we  believe,  whose  laws  afford  greater 
facilities  for  the  organization  of  corporations,  than  do  ours. 
By  general  law,  in  this  State,  three  or  more  persons  may  form 
a  corporation  to  carry  on  any  lawful  business  with  capital 
stock  to  the  amount  of  two  million  dollars — excepting  only 
banking,  insurance,  deposit,  telegraph  and  telephone  com- 
panies. No  scheme  is  so  visionary,  provided  its  purpose  is 
ostensibly  "lawful  business,"  that  it  may  not  become  vested, 
by  virtue  of  our  laws,  with  organized  powers  and,  in  a  sense, 
supported  and  indorsed  thereby.  It  is  only  necessary  to 
organize,  fix  the  amount  of  capital  stock  which  the  company 
may  sell,  record  the  certificate  of  organization  and  receive 
the  approval  of  the  attorney  general.  No  money  is  required 
to  be  paid  in.  The  shares  of  stock  constitute  the  basis  of 
business  and  the  merchandise  in  which  the  corporation  is  to 
deal.  The  state  has,  therefore,  become  the  favorite  organizing 
ground  of  corporations  by  speculators  from  other  states,  and 
it  is  not  uncommon  that  at  least  a  dozen  of  them,  represent- 
ing millions  of  stock  in  the  aggregate,  are  born  in  a  day. 
For  the  year  ended  December  31,  1889,  three  hundred  and 
seventy-five  corporations,  aggregating  more  than  one  hun- 
dred and  thirty-one  million  dollars  of  authorized  capital, 
were  organized  under  the  general  law  in  this  State.  The 
present  year  has  been  still  more  prolific  of  corporations,  as, 
up  to  the  first  day  of  July  last,  two  hundred  and  thirty  cor- 
porations had  been  formed  for  "lawful  business"  since  the 
first  of  the  preceding  January,  with  capital  stock  aggregating 
more  than  eighty-three  million  dollars!  the  month  of  June 
alone  producing  corporations  with  capital  amounting  to 
$20,608,000 !  The  total  number  now  in  existence  it  is 
impossible  to  ascertain  with  accuracy,  as  the  demise  of  many 
is  unheralded  and  unrecorded  ;  but  more  than  4,000  stand 
upon  the  records  of  the  Secretary  of  State,  as  still  possess- 
ing power  for  good  or  evil. 


REPORT   OF    TAX    COMMISSION.  65 

While  our  laws  afford  such  unusual  facilities  for  the  incep- 
tion of  such  corporation,  they  are  singularly  deficient  in 
provisions  tor  deriving  any  adequate  revenue  from  them. 
Corporations  formed  for  manufacturing  and  mining,  for  bank- 
ing, for  transportation,  telegraph  and  telephone  business,  in 
fact  all  legitimate  corporations  which  engage  in  business 
resulting  in  public  welfare  and  owning  property  are  subject 
to  taxation.  Such  corporations  generally  consist  of  citizens 
of  the  state,  but  often  of  citizens  of  other  states  who  seek 
investments  here.  The  corporations  which  are  not  taxed  are 
the  hundreds  formed  for  purely  speculative  purposes  and  may 
or  may  not  have  a  legitimate  basis  of  operation,  or  a  place  of 
business  in  this  state  other  than  nominal.  Other  states  derive 
large  revenues  from  such  corporations,  annually,  besides  a 
large  amount  from  organization  or  enrolment  fees.  In  New 
Hampshire  a  tax  of  $1.00  on  each  $1,000  of  capital  is  imposed 
for  bank  charters,  and  $25  for  each  supplemental  act.  Sav- 
ings banks,  railroad  and  insurance  charters  pay  50  cents  on 
each  $1,000  of  capital  and  all  other  corporations  have  to  pay 
$50  each  for  charters.  In  Rhode  Island  the  tax  is  $100  for 
charter  and  one-tenth  of  one  per  cent,  of  capital  in  excess  of 
$100,000.  In  New  York,  all  corporations,  excepting  a  few 
which  are  otherwise  taxed,  are  assessed  one  and  a  half  mills 
on  a  dollar  of  entire  capital  annually,  and  if  they  pay  divi- 
dends in  excess  of  six  per  cent,  they  must  pay  one-fourth  of 
one  mill  on  every  dollar  of  capital  stock  for  each  one  per 
cent,  of  dividend  in  excess  of  six.  This  tax  is  for  state  pur- 
poses and  in  addition  to  local  taxes.  In  Pennsylvania  from 
$400  to  $1,000  is  levied  on  corporations  by  the  state  for 
charters,  according  to  the  amount  of  their  capital  stock.  If 
the  charter  is  to  run  more  than  twenty  years  the  tax  is  doubled. 
Corporations  are  also  taxed  three  mills  on  a  dollar  of  value 
of  capital  stock.  In  New  Jersey,  an  annual  tax  of  one-tenth 
of  one  per  cent,  of  the  entire  capital  of  corporations  at  par  is 
required,  and  the  result  is  enormous.  Last  year  the  state 
realized  from  1,380  corporations  $266,355.16  through  this 


66  REPORT    OF    TAX    COMMISSION. 

one  mill  tax  on  capital,  and  in  addition  to  the  $1,405,613 
received  from  railroad  and  other  business  corporations.  It 
is  unnecessary  to  cite  the  laws  of  the  several  states  upon  this 
subject.  The  above  are  enough  to  show  precedents  for  tax- 
ing the  capital  stock  at  par  of  corporations  and  for  charters 
or  organizations. 

That  this  is  a  constitutional  mode  of  taxation  is  fully 
decided  in  the  recent  case  of  Home  Insurance  Company  vs. 
New  York,  134  U.  S.,  594.  It  is  a  tax  on  the  corporate 
franchise,  the  right  or  privilege  given  to  persons,  by  the 
state,  of  being  a  corporation.  "This  right  or  privilege  to  be 
a  corporation,"  say  the  court  in  the  above  named  case,  "is 
one  generally  deemed  of  value  to  the  corporators,  or  it 
would  not  be  Bought  in  such  numbers  as  at  present.  It  is  ?i 
right  or  privilege  by  which  several  individuals  may  unite 
themselves  under  a  common  name  and  act  as  a  single  person, 
with  a  succession  of  members  without  dissolution  or  suspen- 
sion of  business,  and  with  a  limited  individual  liability.  *  * 
It  (the  state)  may  require,  as  a  condition  of  the  grant  of  the 
franchise,  and  also  of  its  continued  exercise,  that  the  corpo- 
ration pay  a  specific  sum  to  the  state  each  year  or  month,  or 
a  specific  portion  of  its  gross  receipts,  or  of  the  profits  of  its 
business,  or  a  sum  to  be  ascertained  in  any  convenient  mode 
it  may  prescribe.  *  *  *  No  constitutional  objection  lies 
in  the  way  of  a  legislative  body  prescribing  any  mode  of 
measurement  to  determine  the  amount  it  will  exact  for  the 
privilege  it  bestows."  In  California  vs.  Pacific  Railroad 
Company  127  U.  S.  1,  the  court  say:  "The  taxation  of  a 
corporate  franchise  *  *  *  may  be  arbitrarily  laid  with- 
out any  valuation  put  upon  the  franchises." 

We  have  included  in  our  bill  provisions  to  cover  both  forms 
of  taxation  and  with  the  confident  belief  that  if  the  law  does 
not  result  in  a  material  increase  of  revenue  to  the  State,  it 
will  at  least  have  the  effect  to  reduce  the  number  of  mush- 
room and  noxious  ventures  which  our  general  corporation 
laws  encourage. 


REPORT   OF    TAX    COMMISSION.  67 

TAX    ON    PRIVATE    AND    SPECIAL    ACTS    OF    LEGISLATURE. 

Many  states  impose  taxes  or  fees  for  private  and  special 
acts  of  legislation.  There  is  much  propriety  in  this.  While 
it  is  a  part  of  the  duty  of  the  legislature  to  enact  certain  laws 
for  the  benefit  of  private  parties,  yet  its  principal  function  is 
to  enact  general  laws  lor  the  people.  It  has  come  to  pass, 
however,  in  the  multiplying  conditions  of  business  and  the 
peculiar  circumstances  of  communities  that  a  very  large  por- 
tion of  the  time  of  the  legislature  is  spent  in  investigating 
the  propriety  of  special  legislation  or  in  the  passage,  or 
attempted  passage  of  private  bills.  This  consumption  of 
time  in  special  legislation  narrows  the  time  that  can  be 
devoted  to  the  public  business  and  causes  much  expense  to 
the  State  for  printing  and  in  various  other  ways.  It  is  very 
proper,  therefore,  that  parties  who  are  to  be  benefited  by 
such  legislation  at  the  expense  of  the  public,  should  contribute 
something  to  the  State  revenues. 

The  proposed  bill  imposes  a  tax  of  fifty  dollars  upon  such 
special  acts  of  legislation  as  are  apt  to  consume  most  time  and 
which  often  confer  valuable  franchises,  and  upon  other  private 
acts  the  sum  of  ten  dollars. 


ELECTRIC    LIGHT,  GAS    AND    WATER    COMPANIES. 

We  have  not  included  electric  light  and  power,  gas  and 
water  companies  in  the  act  herewith  as  subjects  of  special 
taxation.  The  bonds  and  stock  which  represents  the  value  of 
such  plants  are  taxable  and,  with  such  information  as  we  have 
been  able  to  get,  we  have  not  thought  it  necessary  that  further 
taxes  should  be  required  of  them. 

There  may,  however,  be  cases  where  such  companies  are 
yielding  large  dividends,  where  the  bonds  i^ucd  by  them,  if 
any,  are  beyond  the  reach  of  the  assessors,  and  uliore  the 
stock  does  not  represent  the  value  of  the  plant.  Sucu  a  con- 
dition might  make  a  tax  on  gross  receipts,  as  in  case  of  ex- 
press companies,  or  a  tax  on  the  property  of  the  company, 


68  KEPORT    OF    TAX    COMMISSION. 

as  in  case  of  telegraph  and  telephone  companies,  advisable. 
We  leave  it,  however,  for  further  investigation  by  the  legis- 
lature to  make  such  provision  as  may  hereafter  be  expedient. 

TAXATION    OF    INSURANCE    COMPANIES. 

Here  again  Maine  is  behind  her  sister  states.  Our  present 
law  exacts  taxes  only  on  the  net  receipts  of  foreign  insurance 
companies,  and,  until  1885  did  not  tax  domestic  life  insur- 
ance companies  at  all  on  premiums ;  and  since  that  date  only 
on  net  receipts.  Of  the  forty  states,  including  Dakota,  whose 
laws  we  have  examined,  only  seven  tax  the  net  instead  of  gross 
receipts,  but  in  every  such  instance  the  tax  applies  to  all 
classes  of  insurance  and  domestic  as  well  as  foreign,  while 
in  Maine  the  tax  until  1885  was  upon  foreign  insurance  only. 
In  several  states  an  annual  license  fee  is  charged  in  lieu  of 
all  taxation  against  foreign  companies  doing  business  in  those 
states,  of  from  $100  as  in  Nevada  to  $1,000  as  in  Virginia. 
In  fifteen  states  a  tax  is  levied  upon  gross  receipts,  and,  in 
most  ol  them,  in  addition  to  annual  license  fees.  A  table  in 
the  appendix  gives  other  details  relating  to  insurance  taxes 
throughout  the  country. 

We  have  made  the  taxes  uniform  in  the  bill  submitted,  two 
per  cent,  on  the  gross  receipts,  allowing  deductions  for  re- 
turned, unearned,  premiums  only,  and  have  retained  the  pro- 
vision authorizing  retaliatory  taxation.  The  present  law 
taxes  the  surplus  funds  of  domestic  life  insurance  companies 
one-half  of  one  per  cent.  We  have  made  the  tax  in  our  bill 
three-fourths  of  one  per  cent,  the  same  as  in  case  of  savings 
banks,  and  believe  that  will  not  be  thought  an  unreasonable 
tax  for  such  protection  as  our  laws  and  government  afford  to 
property. 

Th^re  is  a  class  of  insurance  companies  whose  situs  is  be- 
yond this  State,  but  doing  a  large  and  increasing  business  in 
this  State  without  any  license  or  lawful  authority  whatever 
and  paying  no  taxes  or  fees  to  the  State.  We  have  under- 
taken to  incorporate  provisions  in  our  bill  to  prevent  this- 


REPORT    OF    TAX    COMMISSION.  69 

injustice  to  companies  which  pay  for  a  license  to  do  a  legiti- 
mate business  here  and  pay  taxes  on  that  business.  These 
companies  are  known  as  mills  mutual  or  factory  companies 
and,  according  to  the  last  annual  report  of  the  Insurance 
Commissioner,  the  risks  written  by  the  nineteen  companies 
of  this  kind,  all  located  out  of  the  State,  amounted  in  1889  to 
$539, 964, 635,  on  which  the  premiums  were  $4,937,741.  The 
losses  incurred  were  $1,368,224  and  the  return  dividends, 
$3,150,890,  leaving  for  expenses,  $418,627.  The  Commis- 
sioner says  : 

"It  is  evident  that  the  business  is  a  profitable  one,  and 
there  is  no  good  reason  why  it  should  not  bear  its  just  pro- 
portion of  the  burden  of  taxation.  Licensed  companies  pay 
tees  and  taxes  and  are  obliged  to  come  into  competition  with 
these  companies  that  pay  neither.  Other  mutual  companies 
pursuing  like  methods  write  upon  protected  property  other 
than  factories  and  the  business  all  escapes  taxation." 

In  Pennsylvania,  recently,  a  bill  passed  the  legislature 
granting  to  persons,  companies  and  corporations  permission  to 
insure  in  these  factory  mutual  companies.  Governor  Beaver 
vetoed  the  bill  as  being  repugnant  to  that  clause  of  the  state 
Constitution  which  forbids  the  granting  of  exclusive  privi- 
leges, all  other  insurance  companies  being  subject  to  taxation 
by  the  state.  The  Supreme  Court  of  the  state  has  sustained 
the  veto  and  declared  the  law  permitting  such  insurance  un- 
constitutional. We  have  no  law  permitting  such  insurance 
by  our  citizens  in  towns,  yet  much  business  is  done  by  citi- 
zens of  this  state  with  these  companies  which  have  no  agents 
nor  office  in  this  state,  but  operate  through  "inspectors." 
They  thus  keep  beyond  the  reach  of  our  law  taxing  insurance 
companies,  claiming  that  the  insurance  is  all  effected  at  the 
home  office. 

"The  method  of  reaching  this  business  in  Maine,  inasmuch 
as  it  is  written  at  the  home  office,  is  the  problem  necessary  to 
be  solved,"  says  the  Insurance  Commissioner,  with  whose 
<vssist;iiice  we  have  incorporated  provisions  designed  to  solve 
the  problem. 


70  REPORT    OF    TAX    COMMISSION. 

The  bill  seeks  to  reach  the  business  of  these  concerns  in 
this  State  through  the  inspectors  who  are  made  subject  to  the 
same  license  fees  as  other  foreign  insurance  companies  doing 
business  here,  and  are  required  to  give  bond  for  guaranty  of 
the  payment  of  the  tax  on  premiums  received  by  the  com- 
panies. Persons  are  subject  to  fine  or  imprisonment  for 
doing  any  business  for  such  companies  as  inspectors  in  the 
State,  without  first  complying  with  the  provisions  of  the  bill 
as  to  bond  and  license. 

The  annual  fees  of  insurance  agents  in  Maine  are  but  one 
dollar  under  the  present  law.  In  but  four  other  states  are 
they  so  small  ;  in  twenty-three  states  they  are  from  two  dol- 
lars to  fifty  per  annum  ;  in  fifteen  states  the  fee  is  tw«  dol- 
lars ;  in  four,  five  dollars  ;  in  one,  six  ;  and  in  one — South 
Carolina — fifty  dollars  per  year.  We  recommend  that  the 
fee  be  increased  to  two  dollars  per  year,  and  submit  herewith 
a  bill  to  amend  section  seventy-three  of  chapter  forty- nine  of 
the  Revised  Statutes,  in  accordance  with  this  recommenda- 
tion. 

RAILROADS. 

Our  system  of  railroad  taxation  is  the  outgrowth  of  much 
legislation  and  practical  experience.  Whether  the  rate  of 
taxation  is  as  high  as  it  ought  to  be  is  a  question  about  which 
there  may  be  honest  difference  of  opinion.  The  railroads 
receive  valuable  rights  and  franchises  from  the  people  and  in 
return  confer  great  benefits  upon  the  State  in  the  extension 
and  development  of  business.  The  railroad  lines  are  the 
paths  of  progress  in  a  hundred  ways,  and  it  is  the  policy  of 
all  the  states  to  extend  to  them  all  reasonable  encourage- 
ment. When  they  become  rich  and  powerful  they  should  be 
made  to  bear,  like  other  successful  business  ventures,  their 
fair  share  of  the  public  burdens.  The  rate  of  taxes  levied 
upon  a  railroad  in  the  earlier  days  of  its  operations,  may  not 
be  sufficient  in  subsequent  years.  The  rate  as  applied  to  one 
corporation  may  be  excessive  as  applied  to  another.  The 


REPORT    OF    TAX    COMMISSION.  7 1 

system  of  taxing  the  gross  receipts  is,  doubtless,  as  fair  a 
way  as  any,  for  by  that  method  the  levy  is  graduated  to  the 
amount  of  business  the  road  is  doing. 

Since  1881,  railroad  companies  in  this  State  have  been  sub- 
ject to  taxation  as  follows  : 

First :  All  buildings  of  the  corporation,  and  its  lands  and 
fixtures  outside  of  the  located  right  of  way,  are  subject  to 
local  taxation  by  the  towns  in  which  they  are  located.  Sec- 
ond :  They  are  subject  to  an  excise  tax,  payable  to  the  State, 
and  by  the  State  returned  to  certain  towns,  to  the  amount  of 
one  per  cent,  on  the  value  of  stock  of  such  railroad  com- 
panies, owned  in  those  towns.  The  amount  of  such  excise 
tax  is  found  by  dividing  the  gross  amount  of  transportation 
receipts  by  the  number  of  miles  of  railroad  operated,  to 
ascertain  the  average  gross  receipts  per  mile.  When  such 
average  per  mile  does  not  exceed  $2,250,  the  tax  is  one  quar- 
ter of  one  per  cent.  ;  not  exceeding  $3,000  per  mile,  one- 
half  of  one  per  cent. ,  and  so  on,  increasing  the  rate  one-quarter 
of  one  per  cent,  for  each  additional  $750  per  mile  or  frac- 
tional part  thereof,  provided,  that  the  rate  shall  in  no  event 
exceed  three  and  a  quarter  per  cent.  Third  :  By  Act  of 
18#9,  Chap.  313,  Sect.  4,  railroads  are  made  subject  to  a 
special  tax  to  meet  the  salaries  and  expenses  of  the  board  of 
railroad  commissioners.  This  system,  which  the  legislature 
in  its  wisdom  has  so  recently  adopted,  we  do  not  deem  it 
expedient  to  change,  especially  as  it  is  in  harmony  with  the 
more  recent  systems  adopted  in  several  of  the  states.  We 
are  of  opinion,  however,  that  the  time  has  arrived  when  the 
limitation  to  three  and  one-quarter  per  cent.,  beyond  which 
the  gross  receipts  per  mile  cannot  be  taxed  under  the  present 
law,  may  be  removed,  and  in  the  bill  herewith  reported  that 
restriction  will  not  be  found. 

For  the  purpose  of  comparison,  and  to  aid  in  judging 
whether  our  laws  are  keeping  step  with  those  of  other  states 
in  the  matter  of  railroad  taxation,  we  append  brief  abstracts 
of  the  laws  of  many  other  states  on  that  subject. 


72  REPORT    OF    TAX    COMMISSION. 

MASSACHUSETTS — Tax  upon  franchise  as  in  case  of  all  other 
corporations  and  collected  by  the  state.  The  valuation  is 
found  by  local  assessors  as  follows  :  The  market  value  of  the 
shares  is  ascertained  and  the  aggregate  value  computed.  From 
this  is  deducted  the  assessed  value  of  real  estate  locally  taxed. 
Upon  the  balance  the  tax  is  assessed  at  the  average  rate  of  all 
the  towns  in  the  t-tate.  The  tax  is  divided  among  the  towns 
in  which  shareholders  reside  according  to  the  number  of 
shares  owned  therein,  being  offset  against  said  town's  portion 
of  state  tax.  Taxes  on  non-resident  holders  of  stock  are 
retained  by  the  state.  When  railroads  run  into  other  states 
the  assessment  is  made  in  proportion  to  the  length  of  the  road 
in  the  state  compared  with  its  entire  length. 

VERMONT— Until  18«2,  railroads  were  valued  and  assessed 
by  a  board  of  state  appraisers  at  a  tixed  sum  per  mile,  simi- 
lar to  the  western  method.  In  1882,  the  mode  was  entirely 
changed  and  the  system  of  taxation  on  gross  earnings  per 
mile  of  road  in  the  state,  as  in  Maine,  was  adopted, — only 
the  tax  is  much  larger  than  in  this  state,  being  two  per  cent, 
on  the  first  $2,000  per  mile,  and  on  total  earnings  if  less  than 
that  sum  ;  three  per  cent,  on  the  first  $1,000  in  excess  of 
$2,000  per  mile  ;  four  per  cent,  on  the  first  $1,000  above 
$3,000  per  mile  and  on  all  earnings  in  excess  of  $4,000  per 
mile  five  per  cent. 

Railroads  taxed  like  other  property  on  the  grand  list  at  a 
uniform  valuation  per  mile  of  road-bed,  assessed  by  three 
state  appraisers,  the  total  number  of  miles  in  each  town,  of 
such  road-bed,  is  taxed  by  the  town  at  such  average  valuation. 
Stations  and  other  buildings  are  taxed  separately  in  towns 
where  located. 

CONNECTICUT — Railroads  pay  the  state  a  tax  of  one  per 
cent,  on  the  valuation  of  their  stock,  one  per  cent,  on  par 
value  of  their  bonded  and  floating  debts  not  held  as  a  sinking 
fund,  unless  the  same  is  worth  less  than  par,  then  on  true 
value,  deducting  also  the  value  of  any  real  estate  owned  by 
the  company.  Company  shall  pay  the  tax,  and  have  lien  on 


REPORT    OF    TAX    COMMISSION.  73 

the  stock  for  payment.  When  only  part  of  the  railroad  lies 
within  the  state,  then  to  he  taxed  by  the  state  on  its  capital 
stock,  &c.,  proportionately.  Railroad  not  to  be  taxed  other- 
wise, except  on  its  real  estate. 

XKW  HAMPSHIRE — Railroads  are  taxed  by  the  state  for  the 
value  of  their  road  including  rolling  stock  and  equipments 
within  the  state.  The  value  to  be  ascertained  by  state  board 
of  equalization,  for  which  purpose  said  board  appoints  a  time 
for  hearing  in  relation  to  the  matter.  If  the  representatives 
of  the  railroad  appear  and  give  information  ;it  such  hearing 
said  board  values  such  railroad  as  aforesaid,  and  assesses  on 
such  valuation  a  tax  at  the  average  rate  of  taxation  through- 
out the  state  ;  otherwise  to  be  doomed  two  per  cent,  on  its 
entire  authorized  capital  and  debt.  The  above  valuation  and 
tax  includes  all  buildings.  Railroads  are  exempt  from  taxa- 
tion for  ten  years  after  their  construction. 

The  tax  collected  of  railroads  by  the  state  as  aforesaid  is 
apportioned  and  credited  as  follows  :  One-quarter  among  the 
towns  through  which  the  road  runs  in  proportion  to  the 
amount  of  the  capital  stock  expended  therein  for  buildings 
-and  right  of  way.  To  each  town  in  the  state  in  which  stock 
is  owned,  such  proportion  of  the  residue  of  the  tax  as  the 
number  of  shares  owned  in  such  town  bears  to  the  total  num- 
ber of  shares  in  such  corporation.  The  remainder  of  such 
tax  to  be  retained  by  the  state. 

XEW  YORK — Taxes  are  imposed  on  their  real  and  personal 
property,  in  towns  through  which  the  roads  run,  for  local 
purposes.  In  addition  to  such  taxes,  every  railroad,  express, 
canal,  steamboat,  ferry,  elevated  railway  or  other  transporta- 
tion company,  foreign  or  domestic,  doing  business  within  the 
state,  pays  the  state  for  state  purposes  a  tax  of  one-half  of 
one  per  cent,  on  gross  receipts  within  the  state.  Real  estate 
•of  such  corporations  is  subject  to  local  taxation  but  capital 
stock  is  exempt  from  other  state  taxation. 

KANSAS — The  value  per  mile  of  railroad  beds  are  ascer- 
tained annually  by  state  board  of  railroad  assessors.  Said 


74  REPORT    OF    TAX    COMMISSION. 

board  values  the  entire  road  within  the  state,  including  the 
value  of  the  franchise,  road-bed,  right  of  way,  track,  rolling 
stock,  telegraph  wires  and  instruments,  material  on  hand  and 
supplies,  tools  and  other  property  used  in  operating  such 
road,  together  with  all  money  and  credits  on  hand.  Then 
ascertains  the  total  number  of  miles  of  such  road  within  the 
state  and  the  value  per  mile,  and  the  number  of  miles  in  each 
town  through  which  such  road  runs.  On  this  valuation  the 
local  tax  is  based  at  its  rate  for  general  taxation. 

ILLINOIS — Railroad  property,  for  purposes  of  taxation,  is 
classified  under  four  separate  heads  and  taxed  accordingly. 

The  railroad  track  is  assessed  in  each  county,  town  and 
city  in  proportion  that  the  length  of  road  therein  bea»-s  to  the 
whole  length  of  the  line  in  the  state.  Side  and  second  tracks, 
stations,  machine  shops,  &c.,  assessed  by  the  towns  in  which 
they  are  located. 

The  rolling  stock  is  taxed  by  the  counties,  towns  and  cities 
in  the  proportion  that  the  whole  length  of  line  in  such  county, 
<£c.,  bears  to  the  whole  length  of  road  in  the  state. 

The  personality,  viz.,  tools,  materials  for  repairs  and  all 
other  personal  property,  except  rolling  stock,  is  taxed  in  the 
county,  city  or  town  in  which  it  may  be  on  the  first  of  May. 

The  capital  stock  of  railroads  is  valued  by  the  state  board 
of  equalization  in  the  aggregate  and  distributed  proportion- 
ately to  the  several  counties,  and  by  the  counties  to  the  sev- 
eral towns  entitled  to  a  proportionate  value,  in  the  same 
manner  that  the  value  of  a  "railroad  track"  is  distributed, 
and  such  stock  at  such  valuation  is  taxed  the  same  as  other 
property  in  such  towns. 

INDIANA — The  method  of  taxing  railroads  in  this  state  is 
similar  to  that  adopted  in  Illinois. 

PENNSYLVANIA  —  Railroads,  steamboats,  canal  and  other 
corporations  over  whose  works  freight  is  carried,  are  obliged 
to  make  quarterly  return  stating-  the  number  of  tons  of  freight 
transported  and  to  pay  the  state  a  tax  at  the  following  rates- 


REPORT    OF    TAX    COMMISSIOV.  75 

per  ton  :  On  raw  products  of  quarries,  mines  and  clay  beds 
two  cents  a  ton  ;  on  hewn  timber,  products  of  forest,  agri- 
cultural products  unwrought  three  cents  a  ton;  on  all  other 
articles  five  cents  a  ton.  When  the  same  freight  is  carried 
over  different  but  continuous  lines  of  transportation,  but  one 
tax  shall  be  charged  to  be  borne  proportionately  by  such 
corporations. 

In  addition  to  the  aforesaid  taxes  every  railroad  and  other 
corporation  liable  to  tonnage  tax,  is  required  to  pay  three- 
quarters  of  one  per  cent,  tax  on  gross  receipts. 

NOTE  —  By  act  of  legislature  of  June,  1889,  this  mode  was 
changed.  The  capital  stock  is  now  taxable  at  the  rate  of 
one-  half  mill  upon  the  capital  stock  for  each  one  per  centum 
of  dividend  and  eight  mills  on  the  dollar  of  gross  receipts. 

OHIO  —  Railroad  property  is  taxed  by  towns  at  local  rates 
in  substantially  the  same  manner  as  in  Illinois,  excepting  that 
the  valuation  is  fixed  by  a  county  equalizing  board  instead  of 
state  board. 


WISCONSIN  —  (As  amended  by  chapter  285,  laws  of  1889.) 
The  track,  right  of  way,  depot  grounds  and  buildings, 
machine  shops,  rolling  stock,  and  all  Other  property  necessa- 
rily used  in  operating  any  railroad,  belonging  to  any  railroad 
company,  including  pontoon,  or  pile  and  pontoon  railroads, 
are  exempt  from  taxation  for  any  purpose,  except  that  the 
same  are  subject  to  assessments  for  local  improvements  in 
cities  and  villages,  and  all  lands  of  any  such  railroad  com- 
pany, not  adjoining  the  tracks  of  such  company,  are  subject 
to  all  taxes.  This  does  not  apply  to  any  railroad  operated 
by  horse,  cable  or  electrical  power. 

IOWA  —  Railroads  are  taxed  substantially  as  they  are  in 
Kansas. 

VIRGINIA  —  The  tax  assessed  by  the  state  is  thirty  cents  on 
every  $100  of  the  assessed  value  of  the  road  for  government 
purposes,  ten  cents  on  $100  for  free  schools  and  a  tax  of  one 
per  cent,  on  the  net  income  of  the  road. 


OF  THE 

UNIVERSITY 


7f>  REPORT    OF    TAX    COMMISSION. 

MICHIGAN — Railroads,  on  or  before  the  first  clay  of  Ju\y  in 
oach  year,  pay  to  the  State  Treasurer,  on  the  statement  of 
the  Auditor  General,  an  annual  tax  upon  the  gross  receipts 
of  the  company,  computed  in  the  following  manner,  viz., 
upon  all  gross  receipts  not  exceeding  four  thousand  dollars 
in  amount  per  mile  of  road  actually  and  regularly  operated 
for  the  conveyance  of  passengers  and  freight,  two  per  cent. 
•of  such  gross  earnings  ;  upon  such  gross  receipts  in  excess 
of  four  thousand  dollars  per  mile  so  operated,  three  per 
cent,  thereof;  which  amount  or  tax  shall  be  in  lieu  of  all  other 
taxes  upon  the  property  of  such  companies,  except  such  real 
estate  as  is  owned  and  can  be  conveyed  by  such  corporation 
under  the  laws  of  the  state,  and  not  actually  occupied  in  the 
exercise  of  its  franchises,  and  not  necessary  or  in  use  in  the 
proper  operation  of  its  road  ;  but  such  real  estate  so  excepted 
is  liable  to. taxation  in  the  same  manner,  and  subject  to  the 
same  conditions  as  to  assessment  for  taxation,  as  is  other  real 
estate  in  the  several  townships  within  which  the  same  may  be 
situated. 

MINNESOTA — Every  railroad  has  the  option  of  paying  tax 
on  gross  earnings  (to  be  in  lieu  of  all  other  taxation)  as  fol- 
lows :  For  the  first  three  years,  one  per  cent.  ;  for  next  seven 
years,  two  per  cent.,  and  thereafter  three  per  cent,  of  gross 
earnings.  This  is  a  state  tax,  and  is  a  substitute  for  all  other 
taxation,  even  including  land  granted  to  aid  in  construction. 

KENTUCKY — The  same  rate  of  taxation  for  state  purposes, 
which  is  levied  on  other  real  estate,  is  levied  upon  the  value 
of  the  railrojbd,  rolling  stock  and  real  estate  of  each  com- 
pany ;  and  the  same  rate  of  taxation  for  the  purposes  of  each 
city,  town,  county  or  tax-district,  in  which  any  portion  of  any 
railroad  is  located,  which  is  levied  on  other  real  estate 
therein,  is  levied  on  the  value  of  the  real  estate  of  railroads 
therein. 

NEW  JERSEY — State  board  of  assessors  value  railroad  prop- 
erty in  the  state,  including  road-bed,  tracks,  buildings,  etc., 
.and  all  tangible  personal  property,  franchises,  rolling  stock, 


REPORT    OF    TAX    COMMISSION.  77 

etc.,  deducting  from  the  aggregate,  mortgage  debts  (taxed  to 
creditors).  On  this  valuation  a  state  tax  of  one-half  ot  one 
per  cent,  is  assessed,  and  the 'railroad  is  also  subject  to  a  local 
tax  on  all  real  estate,  buildings  and  track  not  included  in 
"Main  Stem,"  assessed  by  the  state  board  and  distributed  to 
the  several  towns  where  located,  pro  rata,  not  exceeding  one 
per  cent. 

MARYLAND — The  real  and  personal  property  of  all  railroads 
worked  by  steam,  including  bridges  and  tunnels  in  the  value 
of  the  road-bed,  but  not  at  a  higher  rate  than  other  portions 
of  road-bed,  is  taxable  in  the  several  counties  through  which 
such  railroads  run,  like  other  property  therein  situate  for 
local  purposes. 

Said  railroads  are  also  required  to  pay  the  state  a  tax  of 
one-half  of  one  per  cent,  of  gross  receipts,  within  the  state, 
to  be  in  lieu  of  all  other  state  taxation. 

SAVINGS    BANKS. 

Very  early  in  our  investigation  into  the  causes  of  com- 
plaint, we  were  strongly  urged  to  recommend  an  increase  of 
the  tax  upon  savings  banks.  It  was  claimed  by  those  who 
represented  the  interests  of  farmers  that  these  banks  were 
absorbing  the  money  of  the  State,  thus  placing  it  beyond  taxa- 
tion, except  the  three- fourths  of  one  per  cent,  for  State  pur- 
poses, and  that  it  was  their  policy  to  discriminate  against 
real  estate  security  for  loans,  hence  that  they  were  of  little  or 
no  practical  benefit  to  the  borrowers  for  purposes  of  accommo- 
dation. It  was  also  charged  that  these  banks  were  investing 
largely  in  the  national  bank  and  other  taxable  stocks  of  the 
State,  and  thus  removing  them  from  the  reach  of  the  assessor, 
as  it  is  claimed  by  the  managers  of  the  savings  banks  that 
stocks  purchased  and  held  by  them  are  not  subject  to  local 
taxation.  It  is  the  policy  of  all  the  states,  in  which  there  are 
savings  institutions  to  deal  liberally  with  them  in  the  matter 
of  taxation.  They  are  everywhere  acknowledged  to  be  of 


78  REPORT    OF    TAX    COMMISSION. 

<jreat  benefit  to  the  State  and  taxes  are  adjusted  to  favor 
them,  but,  by  comparison,  our  law  relating  to  taxation  of 
savings  banks  will  be  found  more  liberal  than  that  of  some 
other  states,  or,  at  least,  it  is  more  liberally  construed  in 
p  rM  dice. 

In  this  State,  savings  banks  and  institutions  for  savings  pay 
a  State  tax  of  three-fourths  of  one  per  cent,  annually  on  the 
amount  of  deposits.  Deposits  are  exempt  from  municipal 
taxation.  The  deposits  are  subject  to  deductions  for  the 
amount  of  United  States  bonds  and  (by  act  of  1887,  chapter 
64)  shares  of  corporate  stocks  such  as  are  by  law  of  this  State 
free  from  taxation  to  the  stockholders  and  the  value  of  real 
estate  owned  by  said  bank  or  institution.  The  statute  does 
not  include,  specifically,  trust  and  loan  associations  as  being 
subject  to  this  State  tax,  although  they  are  institutions  for 
savings  and  hence  included  in  the  spirit  of  the  law.  As  we 
know  no  good  reason  why  their  deposits  should  not  be  taxed, 
we  have  included  them  in  the  proposed  law.  The  trust  com- 
panies of  the  State  now  represent  about  $2,500,000  ;  more  than 
$1,500,000  of  which  is  in  deposits  and  less  than  $800,000  in 
capital  stock.  We  give  below  a  synopsis  of  the  savings 
bank  tax  laws  of  other  states. 

MASSACHUSETTS — A  state  tax  of  one-half  of  one  per  cent,  is 
imposed  on  the  amount  of  deposits  in  savings  banks,  deduct- 
ing value  of  real  estate  owned  and  used  by  the  bank  and  real 
estate  mortgaged  t0  secure  loans.  So  much  of  this  tax  so 

C5      O 

paid  as  is  on  account  of  shares  in  banks,  which  are  the  abso- 
lute property  of  the  savings  bank  and  subject  to  local  taxa- 
tion, after  the  amount  is  determined  by  the  Tax  Commissioner, 
is  deducted  from  the  next  tax  payable. 

VERMONT — Savings  banks  and  trust  companies  are  taxed 
one-half  of  one  per  cent,  on  amount  of  their  deposits  and 
accumulations,  after  deducting  amount  of  real  estate  owned, 
and  also  amount  of  individual  deposits  in  excess  of  $1,500 
each,  which  excess  is  taxed  in  the  town  of  depositor's 
residence. 


REPORT    OF   TAX    COMMISSION.  79 

NEW  HAMPSHIRE — A  corporation  tax  of  $100  on  each  sav- 
ings bank  is  provided.  Real  estate  is  subject  to  local  taxes. 
On  all  deposits  and  accumulations,  less  the  value  of  real 
estate  locally  taxed,  a  state  tax  of  one  per  centum  is  imposed. 
The  tax  is  distributed  among  towns  in  which  depositors  reside 
pro  rata. 

MARYLAND — The  state  tax  on  savings  banks  is  one-quarter 
of  one  per  cent,  on  total  amount  of  deposits,  not  excepting 
assessed  value  of  leal  estate  subject  to  local  taxation. 

CONNECTICUT — A  state  tax  of  one-fourth  of  one  per  cent. 
on  deposits  exclusive  of  surplus,  deducting  $50,000  and 
amount  invested  in  bonds  of  the  state  or  of  any  town  in  the 
state  in  aid  of  any  railroad,  which  bonds  are  exempt  from 
taxation  by  state  law  :  also  deducting  value  of  real  estate 
owned  by  the  bank. 

RHODE  ISLAND  —  Savings  hanks  and  trust  companies  are 
taxed  for  state  purposes  on  total  deposits  and  reserve  profits. 
Xo  deductions. 

NEW  YORK — Deposits  in  savings  banks  are  not  specifically 
taxed.  But  real  estate  and  stocks  owned  by  them  are  sub- 
ject to  taxation  the  same  as  other  property. 

PENNSYLVANIA — Savings  banks  are  taxed  one  per  cent,  on 
the  par  value  of  their  shares  and  exempt  from  all  other  taxa- 
tion. They  pay  $100  for  charter  fee. 

By  a  usage  which  we  believe  is  without  exception  in  this 
State,  national  bank  stock  owned  by  savings  banks  is  not 
taxed  locally.  There  is  no  direct  provision  of  law  under 
which  such  exemption  can  be  claimed,  nor  is  there  any  pro- 
vision which,  except  by  a  forced  implication,  would  take  bank 
stock  out  of  the  list  of  taxable  property,  because  owned  by  a 
savings  bank.  The  statute,  chapter  6,  section  66,  exempts 
all  deposits  from  municipal  taxation,  but  there  is  no  express 
provision  exempting  stocks  otherwise  taxable.  The  law  ex- 
pressly exempts  from  taxation  to  the  savings  banks  so  much 


80  REPORT    OF    TAX    COMMISSION. 

of  their  deposits  as  are  represented  by  stocks  which  "are  free- 
from  taxation  to  stockholders,"  and,  under  the  familiar  rule- 
of  law  that  the  inclusion  of  one  excludes  the  other,  it  would 
seem  pretty  clear  that  stocks  which  are  not  free  from  taxa- 
tion to  the  stockholder  are  not  free  because  held  by  a  savings 
bank  Exemption  from  taxation  can  only  be  claimed  by 
virtue  of  direct  statute.  An  implication  is  not  enough.  A 
similar  usage  had  grown  up  among  the  savings  banks  of  Mary- 
land. The  law  of  that  state  declares  that  "no  other  tax" 
(than  the  state  tax  on  deposits)  "shall  be  laid  on  such  bank, 
institution  or  corporation  in  respect  to  such  deposits."  The 
Maryland  Tax  Commissioner  in  his  Annual  Report  to  the 
General  Assembly,  last  January,  said  :  "A  few  such  banks 
were  of  the  opinion  that  this  provision  in  the  law  worked  an 
exemption  from  taxation  of  any  investment  they  might  choose 
to  make,  but  when  informed  that  exemption  from  taxation 
can  only  be  made  in  express  terms  by  law  and  cannot  be 
inferred,  they,  with  one  exception,  I  believe,  came  to  the 
conclusion  that  their  former  opinions  were  wrong.  All  of 
them,  however,  acquiesced  in  the  decision  as  made.  The 
only  investments,  the  ownership  of  which  could  raise  such  a 
question,  under  the  law,  are  the  shares  of  stock  of  banks  or 
other  corporations  of  this  state,  upon  which  the  taxes  are 
required  to  be  paid  by  such  banks  or  other  corporations. 
The  taxes  being  thus  required  to  be  paid,  the  ownership  of 
such  shares  by  a  savings  bank  or  institution  could  not  affect 
their  taxation,  unless  the  law  should  so  unequivocally  declare." 
The  Commissioner  then  adds  pointedly  :  "This  would  be  a 
very  unwise  provision  and  is  such  an  one  as  no  prudent  legis- 
lature would  ever  adopt."  If,  however,  shares  of  stocks 
otherwise  taxable  to  the  holders  are  taxed  to  the  savings 
banks  when  owned  by  them,  by  local  authorities,  and  thus 
included  in  the  general  mass  of  personal  property  for  general 
taxation,  the  special  state  tax  should  be  remitted  on  so  much 
of  the  deposits  as  is  represented  by  such  stock. 

The  savings  banks  claim  also  exemption  from  taxation  of 
their  accumulations.      The  "surplus"  funds  of  the   savings 


REPORT    OF    TAX    COMMISSION.  81 

banks  of  Muine,  as  appears  by  the  last  annual  report  of  the 
bank  examiner,  amounted  ta  more  than  five  and  a  half  million 
dollars,  an  increase  of  one  million  and  a  half  since  1884,  or 
an  average  increase  of  $300,000  a  year. 

This  large  sum  is  not  reached  at  all  for  taxation  by  State, 
county  or  town.  Was  it  the  intention  of  the  legislature  that 
it  should  pay  no  taxes?  They  have  not  so  expressed  them- 
selves in  any  law.  It  is  only  by  implication  again  that  such 
exemption  can  be  claimed,  and  the  implication,  even,  seems 
to  us  somewhat  strained.  In  New  Hampshire  and  Vermont 
the  statutory  provisions  are  explicit,  and  extend  the  tax  to 
''deposits  and  accumulations."  It  is  the  policy  of  the  sev- 
eral states  to  foster  within  reasonable  'limits  all  institutions  of 
savings.  They  teach  thrift  and  economy,  materially  add  to 
the  prosperity  of  the  community,  and  in  a  considerable 
degree  prevent  want  and  distress.  Maine  has  recognized  the 
great  benefits  of  her  savings  banks  in  these  respects,  and  the 
people  have  learned  to  rely  upon  their  conservative,  wise  and 
reliable  management  as  absolutely  safe  places  for  their  earn- 
ings. Safety,  indeed,  is  the  first  and  main  object  of  their 
creation.  Large  dividends  from  such  institutions  are  not  for 
the  best  interest  of  the  State.  The  legislature  has  wisely 
limited  them  to  not  exceeding  five  per  cent,  per  annum.  Sev- 
eral savings  banks  paid  up  to  the  limit  last  year,  the  average 
for  all  the  banks  being  four  and  a  half  per  cent.  With  divi- 
dends above  four  per  cent,  per  annum,  capital  is  attracted 
toward  these  banks,  and,  although  the  statutory  limit  for  a 
depositor  is  §2, 000,  there  are  many  ways  in  which  the  law  is 
evaded.  We  think,  therefore,  that  without  crippling  these 
excellent  institutions,  or  in  the  least  impairing  their  sound- 
ness, the  State  tax  should  be  extended  to  their  accumula- 
tions. We  make  no  recommendation  as  to  the  taxation  of 
stocks  held  by  these  banks  as  investments,  incorporating  in 
our  bill  the  present  law,  which  gives  sufficient  authority.  By 
far  the  larger  part  of  the  investments  of  these  banks  and 
associations,  in  the  aggregate,  are  made  out  of  the  State t 
6 


82  REPORT    OF    TAX    COMMISSION. 

They  yield  larger  rates  of  interest  than  home  investments.  As 
a  measure  for  the  encouragement  of  home  loans  and  invest- 
ments, and  in  some  degree  to  equalize  the  difference  in  inter- 
est, the  bill  makes  a  difference  of  one-half  of  one  per  cent, 
in  favor  of  home  investments  ;  the  tax  on  these  is  fixed  at 
one-half  of  one  per  cent.,  and  on  such  amounts  as  are  invested 
in  other  states,  it  is  one  per  cent.  We  believe  this  distinc- 
tion will  have  a  considerable  tendency  towards  keeping  these 
deposits  in  the  State  and  in  circulation  among  our  own  people. 
At  the  suggestion  of  the  State  Treasurer  we  have  changed 
the  time  for  the  semi-annual  payment  of  savings  banks  taxes, 
making  it  a  week  earlier. 

Table  No.  3,  in  the  appendix,  shows  the  aggregate  deposits 
in  the  savings  banks  from  1874  to  1889,  with  other  statistics 
relating  to  them.  The  record  is  a  convincing  one  as  to  the 

o  c 

conservative  management  and  proj?perotis  condition  of  these 
banks. 

LOAN    AND    BUILDING    ASSOCIATIONS. 

This  new  form  of  co-operative  institutions,  which  are  fast 
getting  a  foothold  in  this  State,  we  have  not  included  among 
taxable  corporations.  There  are  now  nineteen  in  practical 
operation,  as  reported  by  the  bank  examiner,  and  they  repre- 
sent in  the  aggregate  loans  to  the  amount  of  over  $350,000. 
Some  are  yielding  a  fair  dividend  to  the  shareholders,  we 
are  informed,  and  the  institution  is  regarded  as  very  helpful 
to  those  who,  through  its  agency  and  help,  secure  homes. 
We  do  not  think  the  time  has  yet  arrived  when  they  should 
be  taxed,  although  in  some  states  they  are  assessed.  In  New 
Hampshire  a  tax  of  one  per  cent,  is  levied  upon  the  whole 
amount  paid  upon  the  stock  or  shares  of  these  associations 
which  are  in  force.  It  should  be  remembered  that  the  osten- 
sible object  is  to  assist  shareholders  to  build  residences.  In 
so  far  as  this  is  done,  they  add  materially  to  the  taxable 
property  of  the  State. 


REPORT    OF    TAX    COMMISSION.  83 

LAND    SALES    FOR    TAXES. 

We  have  incorporated  the  machinery  of  the  old  law,  so  far 
as  practicable,  relating  to  the  collection  of  taxes,  but  have 
endeavored  to  reduce  to  a  less  complicated  method  the  pro- 
visions for  enforcing  collection  of  taxes  on  lands.  The  tribu- 
lations of  tax  officials  in  attempting  to  secure  delinquent 
taxes  on  lands  have  become  notorious  and  it  has  long  been 
an  axiom  among  lawyers  that  a  tax  title  is  prima  facie  void. 
The  troubles  arising  under  proceedings  to  sell  lands  to  secure 
the  taxes  thereon  and  the  dubious  character  of  the  title  thus 
conferred  to  the  purchaser,  are  by  no  means  peculiar  to 
Maine.  No  legislature  of  any  state,  so  far  as  we  have  ascer- 
tained, has  been  wise  enough  to  devise  a  method  of  procedure 
in  such  cases,  which  is  at  once  clear,  explicit  and  just  and 
which  does  not  somewhere  conflict  with  settled  rules  of  law 
touching  the  construction  of  statutes  which  aim  by  processes 
in  invitum  to  transfer  titles  to  property.  Nearly  half  of  the 
tax  laws  ot  some  states  are  devoted  to  regulations  for  this 
purpose,  but,  s»o  far  as  we  can  see,  the  vexed  questions  of 
tax  titles  are  as  often  before  the  courts  of  those  states  for 
decision  as  in  states  with  more  comprehensive  laws  to  regu- 
late tax  sales.  The  main  difficulty  is  that  in  such  cases  the 
law  justly  requires  that  the  provisions  of  the  statute  in  all 
particulars  be  strictly  complied  with.  As  collectors  of  taxes 
are  often  persons  who  are  little  accustomed  to  construing 
statutes,  and  sometimes  quite  illiterate,  it  is  not  strange  that 
fatal  errors  should  be  committed  by  them  in  undertaking  to 
follow  a  statute  requiring  such  punctilious  performance. 

The  difficulties  are  stated  in  a  communication  of  Hon. 
Ephraim  Flint  of  Dover,  a  lawyer  of  much  experience  in  such 
cases,  which  has  been  published.  He  says  :  "In  a  large  portion 
of  our  towns  there  are  no  persons  of  sufficient  ,-kill  or  capacity 
in  the  work  of  assessing  and  collecting  taxes  to  do  MM-H  work 
in  conformity  to  all  the  statute  requirements.  This  should 
not  be  regarded  as  any  disparagement  to  such  towns,  as  our 
tax  laws,  in  many  respects,  are  blind  and  intricate.  Especi- 


84  REPORT    OF    TAX    COMMISSION. 

ally  should  such  towns  be  exonerated  from  all  discredit  when 
we  consider  that  our  legislature,  the  embodied  wisdom  of  the 
state,  and  some  of  our  state  treasurers  have  made  fatal  mis- 
takes in  the  assessment  and  collection  of  state  taxes  ;"  as 
appears  by  several  cases  which  he  cites  from  the  Maine 
Reports.  To  illustrate  the  hardships  which  may  result  to 
towns  from  the  well  understood  defects  inherent  in  these  pro- 
ceedings, Mr.  Flint  cites  the  instance  of  a  town  in  Piscata- 
quis  county  which  has  become  involved  in  a  debt  of  more 
than  sixteen  per  cent,  of  its  entire  valuation  because,  intimi- 
dated by  proprietors  who  deny  the  legality  of  the  taxes  and 
proceedings  of  sale,  "the  town  has  year  after  year  settled  a 
portion  of  the  taxes  at  a  ruinous  discount,  but  in  a  majority 
of  cases  has  been  unable  to  collect  any  amount." 

Intelligence  is  the  first  requisite  of  an  efficient  collector  of 
taxes,  and  it  can  hardly  be  expected  that  a  law  of  so  much 
importance  and  detail,  and  which  assumes  so  much  power  as 
to  take  the  property  of  one  individual  and  transfer  it  to 
another  without  the  consent,  or  possibly  the  knowledge,  of 
the  owner,  should  be  adapted  to  the  comprehension  of  the 
illiterate  or  the  dullard.  Yet  it  would  seem  possible  that  its 
provisions  could  be  made  sufficiently  plain  for  that  degree  of 
intelligence  which  is  characteristic  of  the  native  population 
in  every  town  in  this  State.  The  present  law  is  unnecessa- 
rily complicated  and  obscure.  It  provides,  without  any  suf- 
ficient reason,  two  methods  of  procedure  in  the  collection  of 
delinquent  taxes  on  lands.  One  for  the  sale  of  lands  of  non- 
resident and  the  other  for  those  of  resident  owners,  and 
while  a  part  of  the  requirements  are  materially  different,  a. 
part  are  essentially  the  same,  leading  to  confusion. 

The  provisions  of  the  present  law  relating  to  sales  of  lands 
for  non-payment  of  assessments  thereon  for  roads  in  unincor- 
porated places,  make  no  distinction  between  lands  of  resident 
and  non-resident  owners,  in  the  proceedings,  nor  do  we  find 
in  other  states  such  distinction  made.  We  have  undertaken 
to  divest  the  law  relating  to  all  tax  sales,  of  some  of  its 
obscurities,  and  have  obliterated  the  distinction  between  cases 


REPORT   OF    TAX    COMMISSION.  85 

of  resident  and  nun-resident  proprietors,  making  the  pro- 
ceedings the  same  in  all  cases,  taking  care  that  due  notice  to 
the  owner  or  his  agent  shall  in  all  cases  he  given  before  sale, 
and  ample  opportunity  for  redemption  and  correction  of  mis- 
takes. At  the  same  time  we  recognize  that  the  proprietors, 
whether  re&ident  or  not,  owe  some  duty  to  the  >tate,  to  the 
tax  laws  and  to  the  town  in  which  their  property  is  located. 

In  many  cases  of  defective  sales  of  land  for  taxes,  it  will 
be  found  that  trouble  arose  from  a  defective  description  of 
the  property  taxed,  in  the  original  list.  The  list  is  the  foun- 
dation of  all  subsequent  proceedings.  Each  document  in  the 
process  to  enforce  payment,  wherein  the  land  is  designated, 
depend  on  the  accuracy  of  its  description.  A  defective 
description  in  the  list  runs  through  the  warrant  to  collect, 
the  notices,  returns,  records,  certificates  and  deeds.  These 
latter  may  be  corrected  or  cured  b\  amendment,  but  that 
will  not  cure  the  original  difficulty.  Unless  the  list  descrip- 
tion is  correct,  the  officer  has  but  a  blind  guide  in  advertising 
and  selling  the  land.  It  is  absolutely  essential  that  the 
description  in  the  list  however  much  of  labor  it  may  entail  upon 
the  assessor,  should  be  accurate  enough  to  designate  the  land 
and  notify  its  owner,  beyond  question,  that  it  is  assessed  or  in 
jeopardy  of  sale.  The  description  is  required  to  be  of 
greater  nicety  even  than  in  a  deed  of  conveyance  between 
man  and  man.  There  the  owner  is  a  party  to  the  sale.  The 
ambiguity  in  the  description  may  be  explained.  But  not  so 
in  tax  tales.  There  the  owner  has  nothing  to  do.  The  gov- 
ernment is  acting  through  its  officers  and  in  hostility  to  him. 
Xothing  can  be  supplied  by  intendment. 

In  consolidating  the  provisions  of  the  two  methods,  we 
have  endeavored  to  preserve  as  much  as  possible  of  the  essen- 
tial details  of  the  proceedings  with  which  collectors  may  be 
supposed  to  be  familiar,  but  have  tried  to  include  in  one 
direct  and  consistent,  course  all  the  details  for  notices,  adver- 
tisenn  i.is.  sales,  returns  and  records.  The  bill  also  provides 
a  ivmedy  by  lien  and  its  enforcement  by  suit.  It  was  not  a 


86  REPORT    OF    TAX    COMMISSION. 

task  without  difficulty,  and  we  do  not  expect  that  the  result 
will  be  found  in  practice  free  from  defects,  but  feel  confident 
that  it  will,  at  least,  be  found  no  more  defective  than  the 
present  law. 

REPEALING    ACT. 

We  have  thought  it  advisable  to  report  a  draft  of  a  repeal- 
ing act  for  the  convenience  of  the  legislature  in  case  our 
principal  bill  should  be  adopted  in  the  form  reported.  The 
repealing  act  includes  all  the  acts  which  we  have  consolidated 
in  the  principal  bill,  passed  since  the  last  revision  of  the 
statutes.  In  every  instance  but  one  the  provisions  of  the 
acts  passed  since  the  revision,  and  included  in  the  repealing 
act,  have  been  adopted  as  passed.  The  exception  is  chapter 
seventy-two  of  the  Public  Laws  of  1887,  which  so  amends 
the  law  taxing  express  corporations,  companies  and  persons 
as  to  exempt  from  taxation  an  express  business  carried  on  by 
individuals  not  incorporated.  As  we  are  unable  to  see  a 
sufficient  reason  for  such  exemption  we  have  not  incorporated 
it  in  the  principal  bill.  The  propriety  of  the  passage  of  this 
repealing  act  or  any  portion  of  it  will  of  course  depend  upon 
the  action  of  the  legislature  touching  the  principal  bill,  but 
we  have  collated  the  various  acts  additional  and  amendatory 
of  chapter  six  in  that  form  as  a  matter  of  convenience  if  any 
repeal  shall  become  necessary. 

CONCLUSION. 

The  result  of  our  labors  is  not,  properly  speaking,  the 
recommendation  of  a  new  system  ot  taxation.  A  new  system 
could  hardly  be  framed  without  a  change  in  the  Constitution. 
But  many  of  the  proposed  provisions  are  new  to  our  law  and 
radical.  We  have  acted  on  the  belief  that  the  people  demand 
something  more  than  a  little  tinkering  of  the  Inw  here  and 
there  by  acts  amendatory  and  additional.  That  course  has 
been  pursued  until  our  tax  laws  are  a  patchwork  of  provisions 
often  confused  and  singularly  inefficient  as  revenue  laws.  We 


REPORT    OF    TAX    COMMISSION.  87 

believe  that  the  legislature  declared  by  the  resolve  under 
which  this  Commission  was  appointed,  that  the  time  has 
arrived  when  Maine  should  put  itself  in  line  with  other  pro- 
gressive states  in  her  methods  of  taxation.  With  this  view 
we  have  worked.  Such  changes  as  the  times  and  circum- 
stances demand  cannot  well  be  made  by  more  patching  of  the 
laws.  In  order  to  make  the  changes  we  conceive  to  be  de- 
manded and  believe  to  be  necessary,  an  entirely  new  draft  of 
chapter  six  of  the  Revised  Statutes  was  required,  as  several  of 
the  new  provisions  effect  a  large  part  of  the  chapter.  We 
have  tried  to  make  the  law  more  systematic  and  direct,  com- 
bining in  a  more  united  scheme  state  and  local  taxation. 
While  the  towns  are  left  independent  as  heretofore,  the  plan 
for  listing  and  state  supervision  which  we  propose  makes  their 
interest  and  that  of  the  State  and  county  identical,  in  revenue 
matters,  and  erects  a  substantial  barrier  against  undervalua- 
tions by  town  assessors  to  cheat  the  revenues  of  the  State  and 
shift  the  burdens  to  towns  whose  assessors  are  more  consci- 
entious in  following  the  obligations  of  their  oaths  of  office  and 
the  explicit  requirements  of  the  Constitution.  The  board  of 
state  assessors — the  head  of  the  system — by  a  general  over- 
sight, and  by  visiting  all  sections,  by  frequent  state  valuations, 
is  calculated  to  give  a  coherence,  equality  and  unity  to  the  tax 
system  which  have  heretofore  been  wholly  wanting. 

It  is  only  after  a  great  deal  of  discussion  that  we  have  ven- 
tured to  recommend  some  of  the  more  important  changes,  and 
we  do  not  expect  them  to  be  adopted  by  the  legislature  with- 
out much  consideration. 

We  fear,  also  that  there  may  be  found  in  the  proposed  bill, 
defects  of  construction  and  arrangement  and  quite  probably, 
inconsistencies  which  the  experienced  ej'es  of  legal  gentle- 
men in  the  legislature  may  discover,  or  which  may  be  left  for 
practical  tests  or  judicial  examination  to  disclose ;  it  would 
be  phenomenal  indeed  if  many  faults  should  not  be  found  in 
these  respects.  We  ask  that  it  may  be  charitably  considered 
that  the  time  in  which  we  have  been  obliged  to  complete  the 
comprehensive  task  committed  to  us  has  not  been  a  long  one 


88  REPORT    OF    TAX    COMMISSION. 

when  it  is  remembered  that  your  Commissioners  were  much 
of  the  time  necessarily  engrossed  by  the  demands  of  private 
business.  We  feel  very  confident,  however,  that  our  propo- 
sitions will  grow  in  favor  the  more  they  are  discussed  and 
the  reasons  therefor  are  studied,  and  that  whether  they  shall 
be  approved  by  the  legislature  or  not,  our  labors  will  prove 
of  substantial  value.  Our  aim  has  been  to  propose  a  law 
which,  before  everything  else,  will  equalize  the  burden  of 
taxes,  and  thus  lessen  the  rate  everywhere  ;  decreasing  the 
assessment  of  the  just  and  conscientious  citizen  by  increasing 
to  its  proper  limit  that  of  the  tax  dodger.  That  we  have  hit 
upon  perfect  measures  to  that  end  we  do  not  claim,  for  dupli- 
city and  cunning  defy  the  most  rigorous  statutes ;  but  we 
have  hope  that  our  labors,  if  approved  and  the  result 
embodied  in  the  will  of  the  people,  will  give  them  substantial 
relief.  In  such  faith  we  respectfully  submit  our  work, 
through  the  hands  of  your  Excellency,  to  the  Honorable 
Legislature. 

OLIVER   G.    HALL, 

SAMUEL  J.  ANDERSON, 
JOHN  L.  CUTLER. 


AX  ACT  TO  PROVIDE  FOR  THE  RAISING  OF 
REVENUE  BY  TAXATION. 


Poll    Taxes. 

SI-XT.    1.     A  poll  tax  of  two  dollars  and  no  more  for  Poll  tax. 
town,  county  and  state  purposes,  except  highway  taxes 
separately  assessed,  shall  be  assessed  upon  every  male 
person  between    the   ages  of    twenty-one  and  seventy  ^    liniit 
years,   whether  a    citizen  of  the   United  States  or  an 
alien,  in  the  place  where  he  is  an  inhabitant  on  the  first  where  taxed, 
day  of   each  April,  unless  exempted  therefrom  by  this 
chapter.     No  person  shall  be  considered  an  inhabitant 
of  a  place  on  account  of  residing  there  as  a  student  in 
a  literary    institution.      Not  exceeding  two  dollars  in  Highway  poll 
one  year  may  also  be  assessed  on  each  taxable  poll  for 
highway  taxes  when  separately  assessed  ;  and  the  residue 
of  such  taxes  shall  be  assessed  on  property  ace  rding 
to  its  value. 


Property   Taxes 
SECT.  '2.     All  real  property  within  the  state,  all  per-  Real  and  per- 

J  sonal  estate 

soual  property  of  inhabitants  of  the  state,  and  all  per-  taxable, 
soiial   property   hereinafter   specified   of    persons   not 
inhabitants  of  the  state,  is  subject  to  taxation  as  here- 
inafter provided 

SECT    3.     Real  property,  for  the  purposes  of  taxa-  Real  estate, 

,.  .  ,     /  .  ,.  .         .       ,     ,  „   what  it  includes. 

tion,  except  as  provided  in  section  six,  includes  all 
lauds  in  the  state  and  all  buildings  erected  on  or  affixed 
to  the  same,  and  all  townships  and  tracts  of  laud,  the 
fee  of  which  has  passed  from  the  state  since  the  year 
eighteen  hundred  and  fifty,  and  all  interest  in  timber 
upon  public  lands  derived  by  permits  granted  by  the 


90 


REPORT    OF    TAX    COMMISSION. 


—land  and  inter- 
est  in  timber, 
taxable. 


R.  R.  buildings, 
&c. ,  subject  to 
municipal  tax, 
as  non-resident 
land. 


Commonwealth  of  Massachusetts  ;  interest  and  improve- 
ments in  land,  the  fee  of  which  is  in  the  state  ;  and 
interest  by  contract  or  otherwise  in  land  exempt  from 
taxation. 

SECT.  4.  The  buildings  of  every  railroad  corpora- 
tion or  association,  whether  within  or  without  the 
located  right  of  way,  and  its  lands  and  fixtures  outside 
of  its  located  right  of  way,  are  subject  to  taxation  by 
the  cities  and  towns  in  which  the  same  are  situated,  as 
other  property  is  taxed  therein,  and  shall  be  regarded 
as  non-resident  land. 


Street  railroad 


If  situated  in 
more  than 
one  town,  how 

assessed. 


Subject  to  no 
other  taxes. 


Street  Railroads. 

SECT.  5.  The  property  of  every  street  railroad  cor- 
poration or  association  is  subject  to  taxation  by  the 
cities  and  towns  in  which  the  same  are  situated.  The 
track,  buildings,  cars,  horses  and,  if  the  cars  are  pro- 
pelled by  electricity,  the  poles,  wires,  insulators,  dyna- 
mos, engines,  boilers  and  machinery  owned  or  used  by 
such  corporation  or  association  for  the  purposes  of  such 
railroad  shall  be  valued  and  assessed  like  other  prop- 
erty in  such  town.  If,  however,  the  track  of  a  horse 
railroad  or  the  track,  wires  and  poles  of  an  electric 
railroad  are  situated  in  two  or  more  towns,  the  value 
per  mile  of  such  track,  wires  and  poles  shall  first  be 
determined  by  a  joint  conference  of  the  assessors  of 
all  such  towns,  and  so  much  of  the  track,  poles  and 
wires  as  are  situated  in  each  town  shall  be  therein  taxed 
like  other  property  upon  the  valuation  per  mile  thus 
determined.  The  president,  treasurer  or  secretary  of 
such  corporations  or  associations  shall  furnish  to  the 
assessors  of  any  town  in  which  their  track,  wires  and 
poles  are  situated,  a  statement  of  the  length  of  such 
track,  wires  and  poles,  when  required.  Tne  tax  hereby 
provided  shall  be  in  place  of  all  other  taxes  upon  said 
railroad,  its  property  and  stock,  excepting  for  its  pro- 
portion of  the  salary  and  expenses  of  the  railroad  com- 
missioners as  provided  in  section  eighty-six,  the  amount 
which  each  street  railroad  has  to  pay  under  said  section 
eighty-six,  shall  be  deducted  from  the  tax  provided  byr 
this  section,  before  payment  to  the  town. 


REPORT    OF    TAX    COMMISSION.  91 

Personal  Property. 

Si.<  r.   r,.     Personal  property  for  purposes  of  taxation  what  personal 
includes  goods,  chattels,  moneys,  and  effects,  vvhereso-  jcct  to  taxation, 
ever  they  are  ;  all  vessels  at  home  or  abroad  ;  obliga- 
tions for  money  or  other  property  ;  money  at  interest,  and 
debts  due  the  persons  to  be  taxed  more  than  they  are 
indebted,  but  not  including  in  such  debts  or  indebted- 

:iuy  loan  on  mortgage  of  real   estate,  taxable  as  oniythe  excess 
real  estate,  except  the  excess  of  such  loan  above  the  debt^Sle  the 

-sed  value  of  the  mortgaged  real  estate  ;    public  estate  mort6 
stocks  and  securities;    shares  in  moneyed  and   other  gaged>tHXable* 
corporations    within    or    without   the    state,  except  as 
otherwise  provided  by  law ;  annuities  payable  to  the 
person  to  be  taxed,  when  the  capital  of  such  annuities  is 
not  taxed  in  this  state  ;  and  all  other  property  not  tax- 
able as  real  estate 

Exemptions. 

SECT.   7.     The  following  property  and  polls  are  exempt  Exemptions, 
from  taxation  : 

I      Property  of  the  United  States  and  of  this  state.  United  states 

J  and  Maine 

II.     The  personal  property  of  all  literary  and  scien-  property, 
title  institutions  ;  the  real  and  personal  property  of  all  Property  of  nt- 

.  .  erary  and 

benevolent  and  charitable  institutions  incorporated  by  benevolent  in- 
stitutions ex- 
the  state  :  the  real  estate  of  all  literary  and  scientific  empt  from  taxa- 

i institutions  occupied  by  them  for  their  own  purposes, 

or  by  any  officer  thereof  as  a  residence.     Corporations 

whose  property  or  funds  in   excess  of  their  ordinary 

expenses  are  held  for  the  relief  of  the  sick,  the  poor, 

or  the  distressed,  or  of  widows  and  orphans,  or  to  bury 

the  dead,  are  benevolent  and  charitable    corporations 

within  the  meaning  of  this  specification,  without  regard 

to  the  sources  from  which  such  funds  are  derived,  or  to 

limitations  in  the  classes  of  persons  for  whose  benefit 

they  are  applied,  except  that  so  much  of  the  real  estate 

of  such  corporations  as   is  not  occupied  by  them  for 

their  own  purposes,  shall  be  taxed  in  the  municipality 

in  which  it  is  situated.     And  any  college   in  this  state,  Colleges who,e 

authorized  under  its  charter  to  confer  the  degree   of 

Bnchelor  of  Arts  or  of  Bachelor  of  Science,  and  having 

real  estate  liable  to  taxation,  shall,  on  the  payment  of  State- 


REPORT    OF    TAX    COMMISSION. 


— proviso. 


Household 
furniture, 
apparel,  tools, 
&c. 


Meeting- 
house*, burial 
places  and 
parsonages. 


Young  animals 


Farm  and  orch 
ard  products. 


Indians  and 
wards. 


Aged  and  infirm 
poor. 


Highway  tax 
on  islands. 


such  tax  and  proof  of  the  same  to  the  satisfaction  of 
the  governor  and  council  be  reimbursed  from  the  state 
treasury  to  the  amount  of  the  tax  so  paid  ;  provided, 
however,  the  aggregate  amount  so  reimbursed  to  any 
college  iu  any  one  year  shall  not  exceed  fifteen  hundred 
dollars  ;  and  provided,  further,  that  this  claim  for  such 
reimbursement  shall  not  apply  to  real  estate  hereafter 
bought  by  any  such  college. 

III.  The  household  furniture  of  each  person,    not 
exceeding  three  hundred  dollars  to  any  one  family,  his 
wearing    apparel,   farming    utensils,    mechanics'   tools 
necessary  for  his  business,  and  musical  instruments  not 
exceeding  in  value  fifteen  dollars  to  one  family.     And 
in  addition  thereto  the  beds,  bedding  and  kitchen  utensils 
requisite  for  each  family  and  a  library  not  exceeding- 
one  hundred  dollars  in  value. 

IV.  Houses  of  religious  worship,  including  vestries, 
and  the  pews  and  furniture  within  the  same,  except  for 
parochial  purposes  ;  tombs  and  rights  of  burial ;  family 
bniying    grounds    as    described    in    section     seven    of 
chapter  fifteen  :  public  cemeteries  as  provided  in  section 
eleven  of   chapter  fifty-five,    and  property    held  by  a 
religious  society   as   a  parsonage,  not   exceeding   six 
thousand  dollars  in  value,  and  from  which  no  rent  is 
received.       But    all    other   property   of    any    religious 
society,  both  real  and  personal,  is  liable  to  taxation 
the  same  as  others'  property. 

V.  Mules,    horses   and   neat   cattle    less  than  two 
years  old,  and  swine  and  sheep  less  than  six  months 
old. 

VI.  Hay.  grain  and  potatoes,  orchard  products  and 
wool,  owned  by  and  in  possession  of  the  producer. 

VII.  The  polls  and    estates    of    Indians ;    and    the 
polls  of  persons  under  guardianship. 

VIII.  The    polls    and   estates  of   persons  who    by 
reason  of  age,  infirmity  or  poverty  are  in  the  judgment 
of  the  assessors  unable  to  contribute  toward  the  public 
charges. 

IX.  The  polls  and  estates  of  inhabitants  of  islands 
on  which  there  are  no  highways,  may  be  exempted  from 
the  highway  tax  at  the  discretion  of  the  town  to  which 
they  belong. 


REPORT    OF    TAX    COMMISSION.  93 


X       The  amieducts,  pipes  and  conduits  of  nuv  corpo-  Aqueducts,  and 

fixture*,  con- 


ration,  supplying  a  town  with  water,  aiv  exempt  from 
taxation,  when  such  town  takes  water  therefrom  for  the 
extinguishment  of  fires,  without  charge.  But  this  ex- 
emption does  not  include  therein,  the  capital  stock  of 

—but  not  the 

such  corporation,   any  reservoir  or  grounds  occupied  stock,  reservoir, 

grounds  or 
for  the  same,  or  any  property,  real  or  personal,  owned  property. 

by  such  company  or  corporation,  other  than  as  herein- 
above  enumerated. 

XI.  "Whenever  a  landholder,  having,  prior  to  March  Planted  forest 
thirty,  eighteen  hundied  and  eighty-two  planted  or  set  ^Sptedfor 
apart  for  the  growth  and  production  of  forest  trees  any  u 
cleared  land  or  lands  from  which  the  primitive  forest 

had  been  removed,  successfully  cultivates  the  same  for 
three  years,  the  trees  being  not  less  in  numbers  than 
two  thousand  on  each  acre  and  well  distributed  over  the 
same,  then,  on  application  of  the  owner  or  occupant 
thereof  to  the  assessors  of  the  town  in  which  such  land 
is  situated,  the  same  shall  be  exempt  from  taxation  for 
twenty  years  after  said  application,  provided*  that  said  —  proviso*. 
applicant  at  the  same  time  files  with  said  assessors  a 
correct  plan  of  such  land  with  a  description  of  its  loca- 
tion, and  a  statement  of  all  the  facts  in  relation  to  the 
growth  and  cultivation  of  said  incipient  forest  ;  provided 
further,  that  such  grove  or  plantation  of  trees  is  during 
that  period  kept  alive  and  in  a  thriving  condition. 

XII.  Mines  of  gold,  silver,  or  of  the  baser  metals,  Mines,  for  ten 
when  opened  and  in  process  of  development,  are  exempt  " 

from  taxation  for  ten  years  from  the  time  of  such  open- 

ing.    But  this  exemption  does  not  affect  the  taxation  —but  not  lands 

of  the  lauds  or  the  surface  improvements  of  the  same,  pavement's.101 

at  the  same  rate  of  valuation  as  similar  lands  and  build- 

ings in  the  vicinity. 

Dogs.       . 

SECT.  8.     Town  assessors  shall  include    in  the  tax  Dogs  may  be 
lists  of  their  town  all  dogs  owned  by  or  in  possession  U< 
of  any  inhabitant  on  the  first  day  of  each  April,  setting 
the  number  and  sex  thereof  opposite  the  names  of  the 
respective  owners  or  persons  in  whose  possession  the 
same  are  found,  and  shall  assess  on  all  dogs  over  four 


94  REPORT    OF    TAX    COMMISSION. 

—license  fees,  months  old  an  annual  license  fee  of  one  dollar  for  each 
male,  and  two  dollars  for  each  female  dog,  to  be  col- 
lected of  such  owner,  or  person  in  possession,  in  the 
same  manner  as  state,  county  and  town  taxes  are 
collected. 

Dogs  to  be  SECT.  9.     If  any  such  license  fee  remains  unpaid  ten 

killed  if  fee?  not  • 

paid.  days  alter  it  has  been  demanded  or  the  person   liable, 

by  the  collector  of  taxes,  said  collector  shall  issue  his 
warrant  directed  to  any  constable  of  his  town  command- 
ing him  forthwith  to  destroy  the  dog  for  which  such 
license  fee  was  assessed.  Any  constable  receiving  such 
warrant  from  the  collector  of  taxes  of  his  town  shall 
immediately  execute  the  same  by  shooting,  or  by 
destroying  such  dog  in  some  other  convenient  and 
expeditious  manner. 

Disposal  of  SECT.   10.     Treasurers  of  towns  shall  keep  a  separate 

£gfrom"SSU"  account  of  all  moneys  received  for  such  licenses,  and  of 
torenmne^te*9  a^  sums  paid  out  therefrom.  Every  person  suffering 
them!  °aused  by  loss  or  damage  by  reason  of  the  worrying,'  maiming,  or 
killing  of  his  fowls  or  domestic  animals  by  a  dog  not 
ms  own»  or  m  nis  possession,  may  within  ten  days  after 
dence  to  sustain  ^  fcnows  of  suc[j  }oss  or  damage,  present  his  claim 

therefor  in  writing  to  the  municipal  officers  of  the  town 
wherein  such  loss  or  damage  happens  ;  and  upon  satis- 
factory sworn  evidence  of  the  nature  and  extent  there- 
of, that  the  claimant  has  used  due  diligence  to  discover 
the  owner  of  said  dog  and  has  not  been  able  to  do  so, 
or  that  the  owner  of  said  dog  is  not  financially  respon- 
sible to  the  amount  of  such  damage,  they  shall  approve 
—duties  of  such  portion  of  said  claim  as  they  deem  just,  and  shall 

town  treasurers 

relating  to  ap-     lodge  it  with  the  treasurer  who  shall  register  it  and, 

roved  claims 

annually  on  the  first  day  of  March,  pay  the  amounts 
so  approved  in  full,  if  the  gross  amount  received  by 
the  town  within  the  year  preceding  for  such  licenses 
shall  be  sufficient  for  that  purpose  ;  otherwise  he  shall 
apply  such  amount  pro  rata  in  full  discharge  of  such 
claims.  If  any  portion  of  said  license  fees  shall  remain 
unexpended  as  aforesaid  at  the  end  of  the  municipal 
year,  it  shall  be  added  to  the  funds  of  the  town  for 
general  purposes. 


ama- 


REPORT    OF   TAX    COMMISSION.  95 

Si «  T    11.     The  provisions  of  sections  eight,  nine  and  Theeepro- 

T_r      .,  visions  not  to 

ten  shall  not  be  construed  as  affecting  item  I\  of  sec-  attecr  other 
tion   fifty-nine  of   chapter   three,   nor  section  one  of  doge, 
chapter  thirty. 

Real  Estate. 
SFCT.  12.     Taxes  on  real  estate  shall  be  assessed  in  Real  estate 

where  taxable. 

the  town  where  the  estate  lies,  to  the  owner  or  person 
in  possession  thereof  on  the  first  day  of  each  April. 
In  cases  of  mortgaged  real  estate,  the  mortgagor,  for 
taxation,  shall,  except  as  provided  in  the  following 
section,  be  deemed  the  owner,  until  the  mortgagee  takes 
possession,  after  which  the  mortgagee  shall,  except  as 
provided  in  said  section,  be  deemed  the  owner. 


Mortgages  of  Real  Estate. 

SECT.   13.     When  any  person  has  an  interest  in  real  interests  under 
estate  not  exempt  from  taxation  under  the  provisions  SafSute,  how 


of  this  chapter,  as  holder  of  a  duly  recorded  mortgage  taxed' 
given  to  secure  the  payment  of  money,  the  amount  of 
which  is  fixed  and  certain,  the  amount  of  his  interest 
as  mortgagee  shall  be  assessed  as  real  estate  in  the 
place  where  the  land  lies  ;  and  the  mortgagor  shall  be 
assessed  only  for  the  value  of  said  real  estate  after 
deducting  the  assessed  value  of  all  such  mortgagee's 
interests  therein.     Any  mortgagor  or  mortgagee  of  real  —mortgagor  or 
estate  may  bring  in  to  the  assessors  of  the  town  where 


such  real  estate  lies,  within  such  time  as  shall  be  speci-  Mortgaged*1  in 

fied  for  bringing  in  lists  as  provided  in  section  fifty-one  e8  ate* 

of  this  chapter,  a  statement  under  oath  of  the  amount 

due  on  each  separate  lot  or  parcel  of  such  real  estate, 

and  the  name  and  residence  of  every  holder  of  an  inter- 

est therein  as  a  mortgagee  or  mortgagor.     When  such  _when  mort 

property  is  situated  in  two  or  more  places,  or  when  a  f*?^d0e08rtarae0re 

recorded  mortgage  includes  for  one  sum  two  or  more  Pla<*s  or  mort- 

gage includes 
estates  or  parts  of  an  estate,  an  estimate  of  the  amount  more  than  one 

parcel  for  one 

of  the  mortgagee's  interest  in  each  estate  or  part  of  an  sum. 
estate  shall  be  given  in  such  statement.     The  assessors 
shall,  from  such  statements  or  otherwise,  ascertain  the 
proportionate  parts  of  such  estates  that  are  the  interests 
of  mortgagees  and  mortgagors  respectively,  and  shall 


96 


REPORT    OF    TAX    COMMISSION. 


—if  statement 
not  made  to 
assessors  tax 
valid  though 
mortgagee's 
interest  is  not 
taxed  to  him. 


Mortgagees 
omitting  to  file 
statement  to  be 
concluded  by 
statements  in 
the  mortgage. 
Limit  of  valua- 
tion.   Appor- 
tionment. 


Who  to  be 
deemed  owners 
for  purposes  of 
taxation.    Tax 
bills  of  mort- 
gaged real 
estate. 


Deeds  when 
treated  as  itort- 


assess  the  same.  Whenever,  in  any  case  of  mortgaged 
real  estate,  a  statement  is  not  brought  in  as  herein  pro- 
vided, no  tax  for  the  then  current  year  on  such  real 
estate  shall  be  invalidated  for  the  reason  that  a  mort- 
gagee's interest  therein  has  not  been  assessed  to  him. 
When  such  property  is  situated  in  two  or  more  places r 
the  amount  of  the  mortgagee's  interest  to  be  assessed 
in  each  place  shall  be  proportioned  to  the  assessed  value 
in  the  respective  places  of  the  mortgaged  real  estate, 
deducting  therefrom  the  taxable  amount  of  prior  mort- 
gages if  any  thereon. 

SECT.  14.  If  any  holder  of  such  a  mortgage  fails  to 
file  in  the  assessors'  office  a  full  statement  as  provided 
in  the  preceding  section,  the  amount  stated  in  the  mort- 
gage shall  be  conclusive  as  to  the  extent  of  such  inter- 
est ;  but  the  mortgagee's  interest  in  such  real  estate 
shall  not  be  assessed  at  a  greater  sum  than  the  fair 
cash  valuation  of  the  land  and  the  structures  thereon 
or  affixed  thereto  ;  and  the  amount  of  a  mortgage  inter- 
est in  an  estate  that  has  been  divided  after  the  creation 
of  such  mortgage  shall  not  be  required  to  be  appor- 
tioned upon  the  several  parts  of  such  estate,  except  as 
provided  in  section  twenty-six. 

SECT.  15.  Mortgagors  and  mortgagees  of  real  estate 
shall,  for  the  purposes  of  taxation,  be  deemed  joint 
owners  until  the  mortgagee  takes  possession  ;  and  until 
such  possession  is  taken  by  a  first  mortgagee,  the 
assessors  or  the  collector  of  taxes,  upon  application  to 
any  one  of  them,  shall  give  to  any  such  mortgagee  or 
mortgagor  a  tax  bill  showing  the  whole  tax  on  the 
mortgaged  estate,  and  the  amount  included  in  the  val- 
uation thereof  as  the  interest  of  each  mortgagee  and 
of  the  mortgagor  respectively.  If  the  first  mortgagee 
is  in  possession,  he  shall  be  deemed  sole  owner ;  and 
any  other  mortgagee  in  possession  shall  be  deemed 
joint  owner  with  prior  mortgagees. 

SECT.  16.  Deeds  of  real  estate  absolute  in  form  but, 
given  as  security  for  loans,  are,  for  the  purposes  of 
taxation,  to  be  treated  as  mortgages. 


REPORT    OF    TAX    COMMISSION*.  97 


Wood,  Bark  and   Timber  under  Contract. 
S   CT.   17.     Whenever  the  owner  of  real  estate  notifies  standing  wood, 

...  ,     .         bark  and  timber 

tin-  a»i'>K>rs  that  any  part  ot  the  wood,  bark  and  tun-  may  be  taxed  to 
ber  standing  tlu-reon  has  been  sold  by  contract  in  writ-  pl 
ing.  and  exhibits  to  them  proper  evidence,  they   shall 

•h  wood,  bark  and  timber  to  the  purchaser. 
SI-XT.   18.     A  lien  is  created  on  such  wood,  bark  and  Lien, how 

enforced. 

timber,  for  the  payment  of  such  taxes ;  and  may  be 
enforced  by  the  collector  by  a  sale  thereof  when  cut, 
as  provided  in  section  two  hundred. 

Si;«  T.   19.     When  a  tenant  paying  rent  for  real  estate  Tenant  may 

,.    .  .  , ,       retain  from  rent 

is    taxed  therefor,  he  may  retain  out  or  his  rent  the  tax  paid  by  him. 
taxes  paid  by  him  ;  unless  there  is  an  agreement  to  the 
contrary. 

Personal  Property,  Where  Taxable. 
SECT.   20.     All  personal  property  within  or  without  Personal  es- 

,   .       , ,        «    -11        .         tate,  taxable 

the  state,  except  in  cases  enumerated  in  the  following  where  owner 
ruction,   shall    be   assessed  to  the  owner  in  the  town  re 
where  he  is  an  inhabitant  on  the  first  day  of  each  April. 

SK«T.   '21.     The  excepted  cases  referred  to  in  the  pre-  Exceptions, 
ceding  section  are  the  following  : 

I.  All  personal  property  employed  in  trade,  in  the  Personal  prop- 
erection  of  buildings  or  vessels,  or  in  the  mechanic  aits,  trade,  ship- 
shall  be  taxed  in  the  town  where  so  employed  on  the  mechanic  arts, 
first  day  of  each  April ;  provided,  that  the  owner,  his 
servant,    sub-contractor    or    agent,    so    employing   it, 
occupies  any  store,  shop,  mill,  wharf,  landing  place  or 

ship  yard  for  the  purpose  of  such  employment  in  the 
town  where  such  property  is  on  said  day. 

II.  All    forest  products    in   transit  from    the    for-  porest  productB 
ests  and  floating  in  the  streams  or  waters  of  the  state  wheretiaabie. 
or  lying  on  the  banks  or  shores  thereof,  when  not  at  the 

place  where  they  are  to  be  manufactured  or  employed, 
are  taxable  to  the  owner  in  the  town  where  he  resides, 
unless  previously  taxed  under  section  seventeen.  Pro- 
vided* That  all  lumber,  logs,  timber,  lath,  pickets.  Piled  and  stored 

%      lumber,  logs, 

shingles,  posts,  cord-wood,  tan  bark,  poles  for  electric  &c.,  taxable 

.     '  .,          ,    , .          , ,  -1111..  where  situated 

wires,  or  railroad  ties,  that  may  be  piled  or  left  m  any  A  mil. 
vard,  railroad  reserve,  or  in  anv  shed,  shall  not  be 


98  REPORT    OF    TAX    COMMISSION. 

deemed  in  transit,  but  shall  be  assessed  to  the  owner 
thereof  in  the  town  where  the  same  may  be  situated 
on  the  first  day  of  April,  unless  taxed  under  section 
seventeen . 

Personal  prop-        HI.     Personal  property  which,  on  the  first  day  of 
oftheTt^c.01^   each  April  is  within  the  state,  and  owned  by  persons 
—exceptions,      residing  out  of  the  state,  or  by  persons  unknown  ;  ex- 
cept vessels  built,  in  process  of  construction,  or  under- 
going repairs,  and  hides  and  the  leather,  the  product 
thereof,  when  it  appears  that  the  hides  were  sent  into 
the  state  to  be  tanned,  and  to  be  carried  out  of  the 
state  when  tanned  ;  shall  be  taxed  to  the  person  having 
the  same  in  possession,  or  to  the  person  owning  or 
occupying  any  store,  shop,  mill,  wharf,  landing,  ship 
yard  or  other  place  therein  where  said  property  is  on 
said  day,  and  a  lien  is  created  on  said  property  in  behalf 
^lieenr*on8faTy    of  suc^  Person5  which  he  may  enforce  for  the  re-pay- 
ing tax.  ment  of  all  sums  by  him  lawfully  paid  in  discharge  of 
—lien  on  the      £}ie  ^ax.     A  lien  is  also  created  upon  the  property  for 

property  taxed.  J 

the  payment  of  the  tax,  which  may  be  enforced,  by  the 
constable  or  collector  to  whom  the  tax  is  committed,  by 
a  sale  of  the  property,  as  provided  in  sections  one 
hundred  and  ninety-four,  two  hundred  and  two,  two 
—remedy  for  hundred  and  one.  If  any  person  pays  more  than  his 

paying  more  . 

than  proportion  proportionate  part  of  such  tax,  or  if  his  own  goods  or 
property  are  applied  to  the  payment  and  discharge  of 
the  whole  tax,  he  may  recover  of  the  owner  such  owner's 

—owners  to       proper  share  thereof .     Persons  engaged  in  the  tanning 

o"snwherestan-    of  leather  in  the  state,  shall  on  or  before  the  first    day 
".  of  each  April,  f  urnish  to  the  assessors  of  the  town  where 
they  are  carrying  on  said  business,  a  full  account,  on 

hand,  April  i.  oatn?  of  a^  h'l(\GS  arKi  leather  on  hand  received  by  them 
from  without  the  state,  and  all  hides  and  leather  on  hand 
from  beasts  slaughtered  in  the  state,  which  last  named 
hides  and  leather  shall  be  taxed  in  the  town  where  they 
were  tanned. 

IV.     Machinery  employed  in  any  branch  of  mauu- 

Machinery  and  J  J 

real  estate  of      facture,  goods  manufactured  or  unmanufactured,  and 

corporations. 

re"al  estate  belonging  to  any  corporation,  except  when 
otherwise  expressly  provided,  shall  be  assessed  to  such 
corporation  in  the  town  or  place  where  they  are  situated 
or  employed  ;  and  in  assessing  stockholders  for  their 


REPORT    OF    TAX    COMMISSION.  99 

shares  in  any  such  corporation,  their  proportional  part 
of  the  value  of  such  machinery,  goods  and  real  estate, 
shall  be  deducted  from  the  value  of  such  shares. 

V.  All  mules,  horses,  neat  cattle,  sheep  and  swine  Mules,  horses, 
not  exempt  shall  be  taxed  in  the  town  where  they  are 

kept  on  the  first  day  of  each  April,  to  the  owner,  or 
person  who  has  them  in  possession  at  that  time.  All 
such  animals,  which  are  in  any  other  town,  than  that  in 
which  the  owner  or  possessor  resides,  for  pasturing  or 
any  other  temporary  purpose  on  said  first  day  of  April, 
shall  be  taxed  to  such  owner  or  possessor  in  the  town 
where  he  resides  ;  and  all  such  animals,  which  are  out 
of  the  state,  or  in  any  unincorporated  place  in  the  state 
on  said  first  day  of  April,  but  owned  by,  or  in  charge 
and  possession  of  any  person  residing  in  any  town, 
shall  be  taxed  to  such  owner  or  possessor  in  the  town 
where  he  resides.  If  a  town  line  so  divides  a  farm  that  —when  town 

line  divides  a 

the  dwelling-house  is  in  one  town,  and  the  barn  or  out-  farm, 
buildings  or   any   part,  of   them    is   in   another,    such 
animals  kept  for  the  use  of  said  farm,  shall  be  taxed  in 
the  town  where  the  house  is. 

VI.  Personal  property  belonging  to  minors  under  Personal  prop. 

erty  of  minors 

guardianship,  shall  be  assessed  to  the  guardian  in  the  and  wards, 
place  where  he  is  an  inhabitant.     The  personal  prop- 
erty of  all  other  persons  under  guardianship,  shall  be 
assessed  to  the  guardian  in  the  town  where  the  ward  is 
an  inhabitant. 

VII.  Personal  property  held  in  trust  by  an  execu-  Trust  property, 
tor,  administrator,  or  trustee,  the  income  of  which  is  to  W 

be  paid  to  any  other  person,  shall  be  assessed  to  such 
executor,  administrator,  or  trustee,  in  the  place  where 
the  person  to  whom  the  income  is  payable,  as  afore- 
said, is  an  inhabitant.  But  if  the  person  to  whom  the 
income  is  payable,  as  aforesaid,  resides  out  of  the  state, 
such  personal  property  shall  be  assessed  to  such  exec- 
utor, administrator,  or  trustee,  in  the  place  where  he 
resides. 

VIII.  Personal  property  placed  in  the  hands  of  any 
corporation  as  an  accumulating  fund  for  the  future  ben- 
efit  of  heirs  or  other  persons,  shall  be  assessed  to  the 
person  for  whose  benefit  it  is  accumulating,  if  within 


100 


REPORT    OF    TAX    COMMISSION. 


Undistributed 
personal  prop- 
erty, in  hands 
of  executors  or 
administrators. 


Of  religious 
societies. 


Property  taxed 
elsewhere. 


Stpok  of  toll 
bridges,  how, 
where  and  to 
whom  taxed. 


Stock  of  water, 
gas  or  electric 
companies,  how 
taxed. 


Powers  of  tax 
officers,  are  the 
same  as  in 
assessing  bank 
stocks. 


Clerks  failing  to 
make  returns, 


the  state,  otherwise,  to  the  person  so  placing  it.  or  his 
executors,  or  administrators,  until  a  trustee  is  appointed 
to  take  charge  of  it  or  its  income,  and  then  to  such 
tmstee. 

IX.  The  personal  property  of  deceased  persons  in 
the  hands  of  their  executors  or  administrators  not  dis- 
tributed, shall  be  assessed  to  the  executors  or  adminis- 
trators in  the  town  where  the  deceased  last  dwelt,  until 
they  give  notice  to  the  assessors,  that  said  property  has 
been  distributed  and  paid  to  the  persons  entitled  to 
receive  it.     If  the  deceased  at  the  time  of  his  death  did 
not  reside  in  the  state,  such  property  shall  be  assessed 
in  the  town  in  which  such  executors  or  administrators 
live. 

X.  Personal    property    held    by    religious    societies 
shall  be  assessed  to  the  treasurer  thereof   in  the  town 
where  they  usually  hold  their  meetings. 

XI.  Personal  property  in  another  state  or  country 
on  the  first  day  of  each  April,  and  legally  taxed  there. 

SECT.  15.  The  stock  of  toll  bridges  shall  be  taxed 
as  personal  property,  to  the  owners  thereof,  in  the 
towns  where  they  reside,  except  stock  owned  by  per- 
sons residing  out  of  the  state,  which  shall  be  taxed  in 
the  town  where  the  bridge  is  located,  and  where  such 
bridge  is  in  two  towns,  one  half  of  such  stock  so  owned 
by  persons  residing  out  of  the  state  shall  be  assessed 
and  taxed  in  each  town. 

SECT.  22.  Stock  in  any  local  corporation,  chartered 
for  the  purpose  of  supplying  towns  with  water,  gas, 
electric  lights  or  power,  held  by  any  person  unknown, 
or  out  of  the  state,  shall  be  taxed  in  the  town  where 
such  corporation  is  located  or  transacts  its  ordinary 
business,  as  provided  for  the  taxation  of  bank  stock,  in 
section  thirty-six. 

SECT.  23.  The  powers  of  assessors,  collectors  and 
treasurers,  and  the  liens  on  the  stock,  shall  be  the  same 
as  provided  in  sections  thirty-six,  thirty-seven,  thirty- 
nine  and  fort}7,  and  the  duties  therein  imposed  on  cash- 
iers, shall  be  performed  by  the  treasurers  of  such 
corporations. 

SECT.  24.  When  the  clerk  of  a  corporation  holding 
property  liable  to  be  taxed,  fails  to  comply  with  sec- 


REPORT    OF    TAX    COMMISSION.  101 


tion  thirty,  chapter  forty-six,  whether  the  corporation 
was  chain-red  before  or  since  the  separation  of  Maine  rate. 
from  Massachusetts,  such  property  for  the  purposes  of 
taxation,  shall  be  deemed  corporate  property,  liable  to 
be  taxed  to  the  corporation,  although  its  stock  has  been 
divided  into  shares  and  distributed  among  any  number 
of  stockholders. 

SECT.  2.">.  Such  property,  both  real  and  personal,  is 
taxable  for  state,  county,  city,  town,  school  district, 
and  parochial  taxes,  to  be  assessed  and  collected  in  the 
same  manner  and  with  the  same  effect  as  upon  similar 

taxable  property  owned  by  individuals.     If  the  corpora  —  when  fran- 

chise may  be 
tion  has   the  right  to  receive  tolls,  such  right  or  trau-  sold  on  warrant 

chise  may  be  taken  and  sold  on  warrant  of  distress  for  ° 
payment  of  such  taxes,  as  such  property  is  taken  and 
sold  on  execution. 

SECT.   26.     Blood  animals,  brought  into  the  state  and  Blood  animals. 
kept  for  improvement  of  the  breed,  shall  not  be  taxed 
at  a  higher  rate  than  stock  of  the  same  quality  and  kind 
bred  in  the  state 

SECT.   27.     When  an  insmauceor  other  incorporated  stock  of  compa- 

nies invented, 
company  is  required  by  law  to  invest  its  capital  stock  now  to  be  used. 

or  any  part  thereof  in  the  stock  of  a  bank,  or  other  cor- 
poration in  the  state,  for  the  security  of  the  public, 
such  investments  shall  not  be  liable  to  taxation  except 
to  the  stockholders  of  the  company  so  investing  as 
making  a  part  of  the  value  of  their  shares  in  the  capital 
stock  of  said  company. 

SECT.   '28.     When  the  capital  stock  of  auv  insurance  stock  of  insur- 

ance companies, 
company  incorporated  in  the  state,  is  taxed  at  its  full  when  exempt 

from  taxation. 

value,  the  securities  and  pledges  held  by  said  company 
to  the  amount  of  said  stock,  are  exempt  from  taxation  ; 
but  if  the  pledge  or  security  consists  of  real  estate  in  a 
town  other  than  that  where  the  stockholder  resides,  it 
shall  be  taxed  where  it  lies,  and  the  stock  shall  be 
exempt  to  the  amount  for  which  it  is  assessed. 

SECT.   2'.'.     When  personal  property  is  mortgaged  or  Mortgaged  per- 
pledged,  it  shall  for  purposes  of  taxation,  be  deemed  ?c 
the  property  of  the  party  who  has  it  in  possession,  and 
it  may  be  distrained  for  the  tax  thereon. 

SECT.   ."»<).     The  undivided  real  estate  of  a  deceased  Real  estate  of 

deceased,  how 

person  may  be  assessed  to  his  heirs  or  devisees  without  taxed. 


102  KEPOKT    OF    TAX    COMMISSION. 

designating  any  of  them  by  name  until  they  give  notice  to 
the  assessors  of  the  division  of  the  estate,  and  the  names 
of  the  several  heirs  or  devisees  ;  and  until  such  notice 
is  given,  each  heir  or  devisee  shall  be  liable  for  the 
whole  of  such  tax,  and  may  recover  of  the  other  heirs 
or  devisees  their  portions  thereof  when  paid  by  him  ; 
and  in  an  action  for  that  purpose,. the  undivided  shares 
of  such  heirs  or  devisees  in  the  estate,  upon  which  such 
tax  has  been  paid,  may  be  attached  on  mesne  process, 
or  taken  on  execution  issued  on  a  judgment  recovered 
in  an  action  therefor.  Or  such  real  estate  may  be 
assessed  to  the  executor  or  administrator  of  the  de- 
ceased, and  such  assessment  shall  be  collected  of  him 
the  same  as  taxes  assessed  against  him  in  his  private 
capacity,  and  it  shall  be  a  charge  against  the  estate  and 
shall  be  allowed  by  the  judge  of  probate  ;  but  when  such 
executor  or  administrator  notifies  the  assessors  that  he 
has  no  funds  of  the  estate  to  pay  such  taxes,  and  gives 
them  the  names  of  the  heirs,  and  the  proportions  of 
their  interests  in  the  estate  to  the  best  of  his  knowledge, 
the  estate  shall  no  longer  be  assessed  to  him. 

Personal  estate       SECT.  31.     Partners  in  business,  whether  residing  in 
toberta3h°w  ^e  same  or  different  towns,  may  be  jointly  taxed,  under 
their  partnership  name,  in  the  town  where  their  business 
is  carried  on,  for  all  personal  property  enumetated  in 
paragraph  one  of  section  twenty-one,  employed  in  such 
business  ;  and  if  they  have  places  of  business  in  two  or 
more  towns,  they  shall  be  taxed  in  each  town  for  the 
—exception.       portion  of  property  employed  therein  ;    except  that  if 
any  portion  of  such  property  is  placed,  deposited  or 
situated  in  a  town  other  than  where  their  place  of  busi- 
ness is,  under  the  circumstances  specified  in  said  para- 
graph, and  paragraph  two  of  said  section,  they  shall  be 
taxed  therefor  in  such  other  town ;   and  in  such  cases 
they  shall  be  jointly  and  severally  liable  for  such  tax. 
Lands  may  be         SECT.  32.      All  real  estate,  and  such  as  is  usually 
owner^o^ten-    called  real,  but  is  made  personal  by  statute,  may  be 
taxed  to  the   tenant  in  possession,  or  to  the  owner, 
whether  living  in  the  state  or  not,  in  the  town  where  it 
is  ;  and  when  a  state,  county  or  town  tax  is  assessed  on 
—part owners     lands  owned  or  claimed  to  be  owned,  in  common,  or  in 

may  be  taxed 

and  pay,  sepa-    severalty,  any  person  may  furnish  the  collector,  or  treas- 


REPORT    OF    TAX    COMMISSION.  103 

uivr,  to  whom  the  tax  is  to  be  paid,  an  accurate  descrip- 
tion of  his  part  of  the  land,  in  severalty,  or  his  interest, 
in  common,  and  pay  his  proportion  of  such  tax;    and* 
thereupon  his  land  or  interest  shall  be  free  of  all  lien 
created  by  such  tax. 

SECT    33.      AVlu-n  assessors  continue  to  assess  real  Assessments 
rotate  to  the  person  to  whom  it  was  last  assessed,  such 
assessment  is  valid,  although  the  ownership   or  occu- 
pancy  has  changed,  unless  previous  notice  is  given  of  lel' 
such  change,  and  of  the  name  of  the  person  to  whom  it 
has  been  transferred  or  surrendered ;  and  a  tenant  in  —tenant  in  com- 

...  ,  .  j         -,         ,  mon,  shall  be 

common,  or  joint  tenant,  may  be  considered  sole  owner  considered 
for  the  purpose  of  taxation,  unless  he  notifies  the  assess-  0> 
ors  what  his  interest  is. 

SECT.  34.     The  buildings,  lands,  and  other  property  Property  of 
of   manufacturing,  mining  and   smelting  corporations, 
made  personal  by  their  charters,  and  not  exempt  from 
taxation,  and  all  stock  used  in  factories,  shall  be  taxed  whe    taxed* 
to  the  corporation,  or  to  the  persons  having  possession 
of  their  property  or  stock,  in  the  town  or  place  where 
the  corporations  are  established,  or  the  stock  is  manu- 
factured ;  and  there  shall  be  a  lien  for  one  year  on  such  _nen  for 
property  and  stock  for  payment  of  such  tax,  and  it  may  collection, 
be  sold  for  payment  thereof,  as  in  other  cases;    and 
shares  of  the  capital  stock  of  such  corporations  shall  —shares, 
not  be  taxed  to  their  owners. 

SECT.  35.     All  real  property  in  the  state  owned  by  Real  estate  of 
any  bank  incorporated  by  this  state,  or  by  any  national  be  taxed, 
bank  or  banking  association,  shall  be  taxed  in  the  place 
where  the  property  is  situated,  to  said  bank  or  banking 
association,    for    state,    county    and   municipal    taxes, 
according  to  its  value,  like  other  real  estate;  but  the  _bank  etock> 
stock  of  such  banks  shall  be  taxed  to  the  owners  there-  where  taxed- 
of  where  they  reside,  if  known  to  be  residents  of  the 
state  ;  but  taxation  of  shares  in  such  banks  shall  not  be 
at  a  greater  rate  than  is  assessed  upon  other  moneyed 
capital  in  the  hands  of  citizens 

SECT.  36.     Stock  of  any  bank  held  by  persons  out  of  Taxationof 
the  state,   or   unknown,  which  has  not  been  certified  ojjjj^oluof 
according  to  section  thirty,  of  chapter  forty-six,  in  any  the  state- 
town  in  the  state,  and  is  not  there  assessed ;  and  the 
stock  of  any  bank  appearing  by  the  books  thereof  to  be 


104  REPORT    OF    TAX    COMMISSION. 

held  by  persons  residing  out  of  the  state,  or  whose  resi- 
dence is  unknown  to  the  assessors,  shall  be  assessed  in 
the  town  where  such  bank  is  located,  or  transacts  its 
ordinary  business  ;  and  such  town  has  a  lien  on  such 
stock  and  all  dividends  thereon,  from  the  date  of  such 
assessment,  until  such  tax  and  all  costs  and  expenses 
arising  in  the  collection  thereof  are  paid.  No  assign- 
ment, sale,  transfer  or  attachment  passes  any  property 
in  such  stock  unless  the  vendee  first  pays  such  tax  and 
cost ;  cashiers  of  banks  shall  return  to  the  assessors  of 
the  town  where  such  bank  is  located  or  transacts  its 
business,  all  the  stock  in  such  bank  not  returned  to  the 
assessors  of  other  towns,  according  to  said  section 
thirty,  of  chapter  forty-six  ;  and  such  returns  shall  be 
made  at  the  time  and  in  the  manner  prescribed  therein, 
and  shall  be  the  basis  of  taxation  of  such  property. 
Cashiers  are  SECT.  37.  The  cashier  or  other  officer  of  each  bank, 

e&nStbooka.     slia11  exmbit  on  demand,  to  the  assessors  of  any  town 
all  the  books  ot  such  bank  that  contain  any  record  of 
the  stock  of  such  bank   or  any  dividend,  declared  or 
paid  thereon,  and  if  requested,  shall  deliver  to  them  a 
—to  deliver  cer-  true  and  certified  copy,  of  so  much  of   said  record  as 
recm-dof divi      they  require.     Should  any  cashier  neglect  or  refuse  to 
perform  the  duties  required   by  this  and   the  preceding 
bank  torbeU8eS'    section,  the  assessors  may  doom  such  bank  in  such  sum 
as  they  deem  reasonable,  and  the  assessment  shall  bind 
the  bank,  and  the  tax  thereon  shall  not  be  abated,  and 
for  such  neglect  or  refusal,  such  cashier  forfeits  five 
—cashier  also     hundred  dollars  to  be  recovered  in  an  action  of   debt, 
hable-  half  to  the  prosecutor  and  half  to  the  state. 

Shares  to  be  SECT.  08.     When   returns    of     stock    in   banks    and 

town  where       national  banking  associations  and  other  corporations  are 
wheVrelidence*  raac^e   according  to  the  preceding  section,   or  section 
unknown  OT  is    tnirty  of  chapter  forty-six,  if  it  is  found  by  the  assess- 
out  of  the  Htate.  ors  of  aily  town  receiving  sudi  returns  that  the  holders 
of  such  stock  do  not  reside  in  such   town,  they  shall 
within   fifteen  days   return  the   names   of   such   stock- 
holders, with  the  amount  of  stock  held  by  them  to  the 
asses :Ors  of  the  town  where  such  stockholders  reside, 
if  their  residence  is  known,  and  within  the  state  ;    and 
if  not,  such  return  shall  be  made  to  the  assessors  of  th 


REPORT    OF    TAX    COMMISSION.  105 

town  where  the  bank  is  located,  and  shall  be  subject  to 
section  thirty->ix  of  this  chapter. 

^  <T.  39.     The  collector  of  a  town,  to  whom  has  been  Collectors  of 

taxes  shall  frire 

committed  a   tax   upon  the  stock  of  any  bank,   shall,  notice, 
within  thirty  days  after  the  bills  of  assessment  are  de- 
livered to  him,  cause  a  written  notice  to  be  delivered 
to  the  cashier  or  president  thereof,  stating  the  descrip- 
tion of  stock  taxed,  to  whom  assessed,  if  stated  in  the 
bills,  and  the  tax  thereon.     No  dividend  shall  be  paid  ^K^^ 
on  such  stock  after  such  notice  until  the  tax  and  all  cost is  Paid- 
thereon  are  paid.     The  cashier  mav  pay  such  tax,  and  —tax  charged  in 

olivet. 

payment  shall  constitute  a  charge  in  offset  against  any  _gtock  ma ,  be 
dividend  thereon.     Should  such  tax  remain  unpaid  for  sold, 
ninetv  -lavs  after  such  notice,  the  collector  may  sell 

J          J  J  —powers  of  col- 

Biich  stock  in  the  manner  specified  in  sections  two  hun-  lector? 
dred  and  live  and  two  hundred  and  six.     For  the  pur-  e> 
pose  of  collecting  taxes  on  bank  stock,  collectors  may 
act  in  any  town. 

SKCT.  40.     Any  town  treasurer,  or  his  successor  in  Actions  maybe 
office,  may  maintain  an  action  on  the  case  against  any  treaam-en  of3 
bank,  and  recover  therein  the  tax  assessed  if  unpaid,  [?tk 
and  the  lawful  charges  upon  any  share  thereof,  if  any 
dividend   thereon   has   been  paid    after  such  tax   was 
:    but  judgment  shall  not  be  rendered  in  such 
action  for  a  larger  sum  in  damages  than  the  dividend 
thus  paid,  and  all  such  taxes  and  charges  may  be  recov- 
ered in  one  ^uit.  if  said  treasurer  so  elect. 


Assessors'    Duties. 

SE<  T.   41 .     Each  assessor  or  assistant  assessor  before  oath  of  town 
entering  upon  the  duties  of   his  office,  shall  take  and  asst 
subscribe  the  following   oath    (or    affirmation)  :       ••!,  _f0rm. 

do  solemnly  swear  (or  affirm)  that 

I  will  appraise  all  the  property  subject  to  taxation  in 
the  of  so  far  as  required  by 

law,  equally  and  at  its  just  value  and  as  I  would 
appraise  the  same  in  payment  of  a  just  debt  due  from  a 
solvent  debtor,  having  regard  to  the  current  value  of 
such  property  and  the  sales  thereof  other  than  auction 
sales  in  the  locality  where  situated,  so  help  me  God  (or, 
under  the  pains  and  penalties  of  perjury)." 


OF  THE 

UNIVERSITY 


OF  *>77 


106 


REPORT    OF    TAX    COMMISSION. 


n  and 
clerk's 


Assessors  to 
notify  inhabit- 

ants  to  bring  in 

sworn  inven- 

tories  of  polls 

and  property, 


— owners  must 
furnish  descrip- 

e state. 


merits  o?te~ 
amouut  due  on 

mortgages  of 

real  estate,  with 

name  and  resi- 
dence or  parties 
interested. 


Assessors  to 
blanks'before 


—where  to  be 


—assessors  may 
payer's  state- 
leaving  notice, 


t  b?" 
0  the 


Blanks  to  non- 
sentdbjtmai'ibe 

-non  residents 
to  make  sworn 

return  within 

ten  days  after 

receiving 

blanks 


oath  sha11  be  administered  by  the  town  clerk 
ancl  ^ec*  ancl  recordecl  i11  m's  office. 

SECT.  42.  Before  proceeding  to  make  an  assessment, 
the  assessors  shall  give  seasonable  notice  thereof  to  the 
inhabitants  of  their  respective  towns  in  the  manner 
specified  in  section  fift3T-oue,  requiring  the  inhabitants 
to  prepare  and  bring  in  sworn  inventories  of  their  polls 
and  all  their  estates  real  and  personal,  whether  exempt 
flom  taxati°u  or  llot'  °f  which  they  were  possessed  on 
the  first  day  of  April  of  the  same  year,  describing  each 
parcel  of  real  estate  sufficiently  to  identify  it  clearly  ;  also 
statements,  under  oath,  by  the  mortgagors  and  mortga- 
gees  of  real  estate  lying  in  said  town,  of  the  amount  due 
on  each  separate  lot  or  parcel  of  such  real  estate  and  the 
name  and  residence  of  every  holder  of  an  interest  there- 
m  as  mortgagor  or  mortgagee,  and  an  estimate  by  any 
mortgagee  of  the  amount  of  his  interest  in  any  mort- 
gage of  real  estate  situated  in  two  or  more  places  or 
mortgage  including,  for  one  sum,  two  or  more  parcels. 

SECT.  43.  Town  assessors  to  whom  the  blanks  as 
provided  by  sections  sixty-seven  and  sixty-eight  are 
furnished,  shall  distribute  one  copy  to  each  person,  cor- 
poration and  firm  liable  to  taxation  in  their  several 
towns,  by  leaving  the  same,  on  or  before  the  tenth  day 
of  April,  annually,  with  each  person  so  taxable,  of  full 
age  and  not  insane  or  under  guardianship,  or  at  the 
usual  place  of  residence,  the  office  or  other  place  of 
business  of  each  person,  and  with  a  principal  officer 
of  each  taxable  corporation  ;  and  the  assessor  shall,  at 
the  time  he  delivers  such  blank  form,  demand  and 
receive  such  statement,  unless  such  tax  payer  shall  re- 
quire further  time  to  make  out  the  same,  in  which  case 
the  tax  payer  shall  deliver  the  same  to  the  assessors, 
assistant  assessors,  or  to  one  of  them,  duly  filled  out, 
subscribed  and  sworn  to  on  or  before  the  day  specified 
by  the  assessors  under  the  provision  of  section  fifty-one. 

SECT.  44.  If  any  person  liable  to  taxation  in  any 
town  or  a  principal  officer  of  any  corporation  so  liable, 
resic^es  out  of  tne  town,  the  assessors  shall  forward  to 
such  person  or  officer,  if  known,  a  copy  of  said  blank 
inventory  by  mail  ;  and  such  person  or  officer  of  such 
corporation  shall  fill  out  and  complete  such  inventory 


REPORT    OF    TAX    COMMISSION.  107 

iii  all  respects  as  herein  required,  under  oath,  and  return 
tin.-  same  to  the  assessors  within  ten  days  after  receiv- 
ing said  blanks. 

SECT.  45.     Any  person  or  corporation,  so  liable  to  Failing  to  re- 

„    .,.  .  i      vi       i     ccive  blank*, 

taxation   in   any  town,   failing  to   receive  such   blank  tax  payer  must 
inventory,  shall  apply  to  the  assessors  for  a  copy  of  Sy 


such  blank  on  or  before  the  fifteenth  day  of  April  and 
shall  return  the  same  duly  completed  within  ten  days 
thereafter.     Corporations  shall  act  through  their  presi-  —corporations. 
dents,  secretaries  or  treasurers  under  this  act. 

SECT.  46.     Every  person  or  corporation  may  include  Vaiuemaybe 

-    l  stated  in  lists. 

in  said  list  a  statement  of  the  value  of  any  property 
therein  named.     The  assessors  shall  not  be  bound  by  " 
said  valuation,  but  shall  make  such  personal  examina- 
tion of  all  visible  property  as  will  enable  them  to  ap- 
praise it  at  its  just  value. 


Tax  Payers'  Oath. 
SECT.  47.     The  oath  required  to  said  inventory  may  Oath  may  be 

.  administered  by 

•be  administered  by  one  or   the  assessors  or  assistant  assessors  or 

,,         .  ,     '  ,  .  »    , ,  assistants,  or  by 

assessors  of  said  town  or  by  a  justice  of  the  peace  or  qualified  officer, 
other  person  qualified  to  administer  oaths,  and  shall  be 
printed  on  said  inventories  as  follows : 

"I,  of 

do  solemnly  swear  (or  affirm)  that  the  above  is  a  true,  Form  of  oath  of 

J  tax  payer. 

full  and  correct  list  and  description  of  all  my  property, 
both  real  and  personal,  and  that  I  have  set  down  only 
such  debts  as  I  am  unconditionally  bound  to  pay.  to  the 
amount  of  deduction  claimed  and  not  including  debts 
secured  by  mortgages  of  real  estate  taxable  as  such ; 
that  my  answers  to  these  interrogatories  are  true  accord- 
ing to  my  best  knowledge  and  belief,  and  that  I  have 
not  conveyed  or  disposed  of  any  property  or  estate,  nor 
created  any  fictitious  debt  for  the  purpose  of  evading 
the  provisions  of  law  or  of  affecting  the  value  and 
amount  of  my  taxable  property.  So  help  me  God  ;  (or 
under  the  pains  and  penalties  of  perjury.)" 

SECT.  48.     In  case  of  property  in  the  possessiou  of  Trust  property, 
trustees,  estates  of  deceased  persons  and  persons  under 
guardianship,  and  of  all  property  not  in  the  care  or 
possession  of  the  owrers,  the  blank  inventory  shall  be 


108  REPORT    OF    TAX    COMMISSION. 

delivered  to  or  procured   by  the   person   to  whom   the 
property   is  by  law  taxable,  who  shall  fill  out,  make 
oath  to,  and  return  the  same  to  the  assessors. 
Penalty  ior  wii-       SECT.  49.     If  a  person  or  corporation  wilfully  omits 

ful  omission  to  .  . 

return  sworn      to  make,  swear  to   and   deliver   said   inventory,  or  to 

answer  any  interrogatory  therein,  as  required   by  this 

act,  or  makes  a  false  answer  or  statement  therein  ;  then, 

said  assessors  shall  insert  against  the  name  -'refused  to 

inventory"  or  "refused  to  swear  or  affirm,"  and   shall 

duties?*01          ascertain,  as  best  they  can,  the  amount  of  the  taxable 

—shall  appraise  property  of  such  person  or  corporation,  shall  appraise 

doSKhe*  *  ld  tne  same  at  its  just  value  and  shall  double  the  sum  so 

obtained,  and  the  amount  so  found  shall  be  the  sum  on 

which  the  tax  shall  be  assessed,   and  such  person  or 

corporation  is  thereby  barred  of  his  right  to  make  appli- 

—  right  of  appeal  ca^on  to  the  assessors  or  to  the  county  commissioners 
payers  'who^vii-  tor  auv  abatement  of  such  taxes  unless  such  inventory 
returnTwoni      *s  offerecl  w^tn  suc^  application,  and  satisfactory  proof 

produced  that  such  person  or  corporation  was  prevented 

from  returning  it  at  the  time  required  by  accident,  mi.s- 

inTentory1^  to     ^O1"tune»  or  mistake.     Any  person  falsely  making  oath 

perjury.  to  such  inventory  shall  be  deemed  guilty  of  perjury  and 

—  persons  pre-    Punisne^    accordingly.       When   any    person     shall    be 

unavoidably  prevented  from  making  and  verifying   an 


aner  recover  &J*  inventory  of  ms  property  for  taxation,  by  sickness  or 

or  return  to  rile,  absence,    the    assessors  shall    enter   against  his   name 

"sick"  or  "absent,"  and  when  the  assessors  shall  have 

tixed   the   amount  thereof,  he  may  at  any  time  within 

thirty  days  after  his  recovery  or  return,  make,  verify 

on  oath  and  file  with  the  assessors,  or  one  of  them,  his 

inventory  ;   but  in  such  case  before  the  assessors  shall 

receive   such  inventory,  the  person   making  the  same 

—affiant  must     shall   add  to  the   required   affidavit  a  statement  to  the 

•  ertiiy  the  cause 

of  delay.  effect  that  his  failure  to  verity  and   return  such  state- 

ment at  the  proper  lime  wTas  occasioned  by  absence  or 
sickness,  and  the  assessors,  if  satisfied  that  the  same  is- 
true  and  the  inventory  correct,  shall  amend  their  list  of 
of  his  property  accordingly. 


REPORT    OF    TAX    COMMISSION.  109 


Town  Assessors'  Oath  after  Assessment. 
SECT.  oO.     All  assessors    of    taxes  shall   take   and  Oath  of  town 

, .    .          ,.    ,  -  >rs  to 

subscribe  upon  the  mvoice>  ur  u>sessmeut  lists  of  both  lists. 
resident  and  non-resident   tuxes  an  oath  or  affirmation 
to  the  following  effect,  which  may  be  administered  by 
the  town  clerk  or  any  justice  of  the  peace : 

•1A\  ,  and  ,     -sessors  for  —form  of  oath, 

the  of  in  the  county  of  , 

do  severally  solemnly  swear  (or  affirm)  that  the  value 
of  all  property,  including  moneys,  credits,  investments 
in  bank  stocks,  joint  stock  companies  or  otherwise, 
of  which  a  statement  has  been  made  to  us  by  the  per- 
sons required  by  law  to  list  the  same,  is  truly  returned 

-<>t  forth  in  such  invoice  :  that  in  every  case  where 
by  law  we  have  been  required  to  ascertain  the  items 
and  value  of  the  property  of  any  person,  firm"  or  corpo- 
ration, we  have  diligently  and  by  the  best  means  in 
our  power,  endeavored  to  ascertain  the  same :  that,  as 
we  verily  believe,  a  full  list  with  the  value  thereof, 
estimated  by  the  rules  prescribed  by  law,  is  set  forth  in 
this  invoice  ;  and  that  in  no  case  have  we  knowingly 
omitted  to  demand  of  an}'  person  of  whom  by  law  we 
were  required  to  make  such  demand,  an  inventory  such 
as  he  was  required  by  law  to  make  and  return ;  and 
each  for  himself  does  solemnly  swear  (or  affirm)  that 
he  has  not  in  any  way  connived  at  airy  violation  or 
evasion  of  any  of  the  requirements  prescribed  by  law 
in  relation  to  the  enumeration  and  valuation  of  every 
kind  of  property  subject  to  taxation." 

Whoever  falsely  takes  the  foregoing  oath  shall   be  —penalty  for 
deemed    guilty    of    perjury    and    shall    be    punished  oath*/ 
accordingly. 

SECT.  51.     The  town  assessors  shall  on  or  before  the  Town  assessors 

,,.-,.  ...  .  .  _      to  notify  tax 

second   Monday  in  April  in  each  year  give  reasonable  payers  to  bring 

public  notice  of  the  times  and  places  where  they  will  be  AM*  property . 

in  session  for  the  purpose  of  receiving  inventories  of 

taxable  property  and  of  hearing  all  parties  in  regard  to 

their  liability  to  taxation.     Such  notice  shall  be  posted  —notices,  LOW 

posted  and  pub- 

upon  the  outer  door  of  the  town  house  and  of  every  Hshed. 
school-house  in  towns  and  plantations,  and  in  cities,  on 
the  outer  door  of  every  voting  place,  and  in  some  news- 


110 


REPORT    OF    TAX    COMMISSION. 


Rule  for  ap- 
praisal of  prop- 
erty by 

assessors. 


— assessors 
must  describe 
real  estate. 


Assessors,  how 
punished  for 
neglect  to 
deliver  or  mail 
blank  inven- 
tories, or  other 
neglect  of  duty. 


Penalty  for  wil- 
ful undervalua- 
tion of  property 
for  taxation. 


—penalty  for 
corruptly  over- 
valuing prop- 
erty for 
purpose  of 
evading  law  lim- 
iting town 
indebtedness. 


paper  published  in  said  town  or  city,  if  any,  and  by 
such  other  means  as  the  assessors  shall  deem  proper. 

SECT.  52.  The  assessors  shall  appraise  each  item  of 
property,  in  order  to  determine  its  just  value,  at  such 
sum  as  they  would  appraise  the  same  in  payment  of  a 
just  debt  due  from  a  solvent  debtor,  having  regard  to- 
the  current  value  of  such  property,  and  the  sales  thereof 
other  than  auction  sales,  in  the  locality  where  it  is  situ- 
ated, and  shall,  in  the  assessment  lists,  describe  each 
parcel  of  real  estate,  sufficiently  to  make  its  exact  loca- 
tion and  identity  clear. 

SECT.  53.  If  any  assessor  or  board  of  assessors  shall 
neglect  to  deliver  in  hand  or  leave  at  the  residence  or 
place  of  business  of  any  person,  or  of  an  officer,  as  here- 
inbefore designated,  of  a  corporation  liable  to  be  taxed 
in  their  respective  towns,  or  shall  fail  to  mail  to  any 
non-residents  so  liable,  the  blank  inventory  provided  by 
this  act  for  returns  of  property,  when  such  assessor 
shall  have  reason  to  believe  such  person  or  corporation 
to  be  the  owner  or  custodian  of  taxable  property  therein  ; 
or  shall  wilfully  violate  any  provision  of  this  chapter,, 
or  neglect  to  perform  any  duty  imposed  thereby  or  by 
any  law  of  the  state  to  which  no  different  penalty  is- 
affixed,  he  or  they  shall  be  fined  for  each  offence  one 
hundred  dollars  to  the  use  of  the  town,  to  be  recovered 
by  indictment  within  one  year  after  the  commission  of 
the  offence,  or  by  an  action  of  debt  by  the  town  treas- 
urer brought  within  two  years  thereafter. 

SECT.  54.  Every  assessor  of  any  city  or  town,  or 
other  person  chosen  to  determine  the  valuation  of  prop- 
erty for  the  purpose  of  taxation  who  shall  knowingly 
fix  any  such  valuation  of  any  property  at  a  less  sum 
than  its  full  and  fair  cash  value  in  order  that  the  tax 
payers  of  such  city  or  town  may  escape  payment  of 
their  just  proportion  of  any  state  or  county  tax,  or  for 
any  other  fraudulent  or  corrupt  purpose,  or  who  shall 
knowingly  fix  the  valuation  of  any  such  property  at  a 
higher  sum  than  its  full  and  fair  cash  value  for  the 
purpose  of  evading  or  aiding  in  the  evasion  of  any  law 
wrhicb,  at  the  time  such  valuation  is  made,  is  in  force 
limiting  municipal  indebtedness  or  the  rate  of  taxation,. 


REPORT    OF    TAX    COMMISSION.  Ill 

to  a  percentage  of  valuation,  or  for  any  other  fraudu- 
lent, corrupt,  or  malicious  purpose,  shall  be  punished 
by  a  fine  not  exceeding  one  thousand  dollars,  or  by 
imprisonment  not  exceeding  six  months,  or  by  both 
such  fine  and  imprisonment. 

SECT.  .").").     The  assessors  of  each  town  shall  make,  Assessors  to 

prepare  lists  of 

on  or  before  the  first  day  of  August,  1802,  and  on  or  polls  and  prop- 
before  the  first  day  of  August  annually  thereafter,  in  ist,  annually, 


suitable  blank  books,  true  and  accurate  lists  of  all  the 

male  polls  between  twenty-one  and  seventy  years  of  age 

belonging  to  such  town,  whether  at  home  or  abroad, 

distinguishing  such  as  are  exempted  from  taxation,  and 

shall  also  make  true  and  accurate  lists  of  all  property 

both  real  and  personal,  distinguishing  such  as  is  exempt 

by  law  from  state  and  county  taxes  within  their  several 

towns,  and  all  such  property  of  whatever  kind  wherever 

situated  subject  to  taxation  therein  for  the  then  current  list8- 

year,  including  cash  on  hand  or  on  deposit  in  banks 

other  than  savings  banks,  and  debts  due  or  owing  from 

solvent  debtors   (exceeding  the  amount  owing  by  the 

tax  payer),  also  all  public  and  private  securities  and 

stocks.     And  said  assessors  shall  affix  to  said  estates 

of  each  individual,  firm  and  corporation  set  forth  in 

said  lists,  the  full  cash  value  thereof  as  provided  in  sec- 

tion fifty-two,  and  shall  also  make  separate  lists  of  all  -separate  lists 

•>  of  vessels,  with 

vessels  owned  in  whole  or  in  part  in  their  respective  names,  age,  val- 

ue and  tonnage. 

towns,  stating  the  name,  age,  value  and  tonnage  thereof, 

and  shall  arrange  in  alphabetical  order  an  abstract  of 

the  individual  list  of  all  tax  payers  in  such  town  or  city, 

giving  the   aggregate  valuations  of  personal  and  real  —list  of  aggre- 

estate,  on  or  before  the  first  day  of  August  in  each  year,  pared  for 

for  the  inspection  of  the  tax  payers  of  such  town  or  city  ;  SxPpayere.01 

and  said  assessors  shall,  on  or  before  the  first  day  of  Sep- 

tember, annually,  make  and  return  on  blank  lists  which 

shall  be  furnished  by  the  state  assessors  for  that  pur-  ^Jfe  assessors 

pose,  aggregates  of  polls  and  of  the  valuation  of  each 

and  every  class  of  property  assessed  in  their  respective  annually- 

towns,  with  the  total  valuation  and  percentage  of  taxa- 

tion, and    before  transmitting   the   same  to  the   state 

assessors  shall  make  and  subscribe  on  said  aggregates 

an  oath  or  affirmation,  as  follows  :     "AVe,  the  assessors 


f  .  i  f  i      returns  to  state 

Of  the  Of  ,  do  assessors. 


112  REPORT    OF    TAX    COMMISSION. 

swear  (or  affirm)  that  the  foregoing  statement  contains 

true  aggregates  of  the  valuation  of  each  class  of  prop- 

— form  of  oath.   er£y  assessed  in  said  town  of  for  the  year 

,  and  that  we  have  followed  all  the  requirements  of 

law  in  valuing,  listing  and  returning  the  same.     So  help 

me  God"  (or  "under  the  pains  and  penaltiesof  perjury") . 

Report  on  Corporate  Property. 

Town  assessors  SECT  56.  The  assessors  shall  annually,  on  or 
andTrope^or:  before  the  first  day  of  September,  return  to  the  state 
tfonsTo  staTe*ra~  assessors  the  names  of  all  corporations,  except  banks 
of  issue  and  deposit,  having  a  capital  stock  divided 
into  shares,  chartered  by  the  state  or  organized  under 
the  general  laws  for  the  purposes  of  business  or  profit, 
and  established  in  their  respective  towns  or  owning  real 
estate  therein,  and  of  all  companies,  copartnerships, 
and  other  associations  having  a  location  or  place  of 
business  in  this  state  in  which  the  beneficial  interest  is 
held  in  shares  assignable  without  consent  of  the  other 
associates  specifically  authorizing  such  transfer,  and  a 
statement  in  detail  of  the  works,  structures,  real  estate, 
and  machinery  owned  by  each  of  said  corporations, 
companies,  copartnerships,  and  associations,  and  situ- 
ated in  such  town,  with  the  value  thereof,  on  the  first 
day  of  April  preceding,  and  the  amount  at  which  the 
—and  return  same  is  assessed  in  said  town  for  the  ihen  current  year. 

amouiitofall 

taxes  laid  1  hey  shall  also,  at  the  same  time,  return  to  the  state 

within  town  for  ..  ,    .  , 

current  year,  assessors  the  amount  of  all  taxes  laid,  or  voted  to  be 
laid,  within  said  town,  for  the  then  current  year,  for 
state,  county,  and  town  purposes. 

Penalty  for  SECT.  57.     If   the  assessors   of   a  town    neglect   to 

comply  with  the  requirements  of  the  preceding  section, 
each  assessor  so  neglecting  shall  forfeit  one  hundred 
dollars. 

Supplementary       SECT.  58.     When   any    assessors,    after   completing 
ma^brSe,  to  the  assessment  of  a  tax,  discover  that  they  have  by 
takes?*  ml8~       mistake  omitted  any  polls  or  estate  liable  to  be  assessed, 
they  may,  during  their  term  of  office,  by  a  supplement 
to  the  invoice  and  valuation,  and  the  list  of  assess- 
ments, assess  such  polls  and  estate  their  proportion  of 
such  tax    according  to  the  principles     on   which   the 


REPORT    OF    TAX    COMMISSION.  113 

-sinent  was  made,  certifying  that  they  were  omitted 
by  mistake.  Such  supplemental  assessments  shall  be 
committed  t )  the  collector  with  a  certificate  under  the 
hands  of  the  assessors,  stating  that  they  were  omitted 
by  mistake,  and  that  the  powers  in  their  previous  war- 
rant, naming  the  date  of  it,  are  extended  thereto  ;  and 
the  collector  has  the  same  power,  and  is  under  the  same 
obligations  to  collect  them,  as  if  they  had  been  con- 
tained in  the  original  list ;  and  all  assessments  shall  be 
valid,  notwithstanding  that  by  such  supplement  the 
whole  amount  exceeds  the  sum  to  be  assessed  by  more 
than  five  per  cent. 

SECT.  59.  The  assessors  shall  allow  the  selectmen,  inTentorie8  not 
mayor  and  treasurer  of  such  town  or  city  and  the  state's 
attorney  for  the  county  to  examine  the  inventory  or 
inventories  of  any  person  which  they  may  name,  and  examine  them, 
shall  also  permit  each  tax  payer  or  his  attorney  to 
examine  his  or  her  own  inventory  or  inventories  and 
shall  not  allow  any  other  person  to  inspect  said  inven- 
tories. Any  or  all  such  inventories  shall  be  lodged 
in  the  office  of  the  assessors,  and  shall  be  produced 
in  court  by  one  of  them  upon  subpoena  for  that  pur- 
pose. The  contents  of  said  inventories  shall  not  be 
disclosed  by  any  person  having  access  to  the  same,  _tne  contents 
except  as  set  forth  in  this  section  and  in  the  event  of 
prosecutions  for  breach  of  the  provisions  of  this  act. 
Whoever  violates  the  provisions  of  this  section  forfeits 
one  hundred  dollars. 

—penalty. 

SECT.  60.     The  assessors  shall  deduct  from  the  debts 
due,   if   any,  to  any  tax  payer,  only  so  much  of   his  Tax  payer  can 
indebtedness  as  is  in  excess  of  the  aggregate  amount  have  deduction 

lor  such  debts 

or  bonds,  stocks  and  other  securities  exempt  from  tax-  only  as  are  in 

ex  cess  of  his 

ation  by  the  laws  of  this  state  and  the  amount  of  his  non-taxable 

,  ...  securities  and 

deposits  in  any  savings  bank,   savings  institution,  or  deposits. 

trust  company  in  this  state  or  elsewhere  ;  and  no  debt 

owing  shall  be  taken  into  consideration  in  estimating  -the  creditor's 

such  deduction,  unless  the  person  claiming  the  deduc-  Se^e  muU  be" 

tion  states  in  his  inventory  the  amount  of  such  debt, 

and  the  name  and  place  of  residence  of  the  person  to  dedT1cted- 

whom  it  is  owing. 


114 


REPORT    OF    TAX    COMMISSION. 


Taxes  assessed 
according  to 
this  chapter. 


Liability  of 
assessors  im- 
personal faith- 
fulness only. 


SECT.  61.  Except  in  parishes  and  societies  where 
different  provision  is  made,  all  taxes  shall  be  assessed 
according  to  the  provisions  of  this  chapter. 

SECT.  62.  Assessors  of  towns,  plantations,  school 
districts,  parishes  and  religious  societies,  are  not  re- 
sponsible for  the  assessment  of  any  tax,  which  they 
are  by  law  required  to  assess  ;  but  the  liability  shall 
rest  solely  with  the  corporations  for  whose  benefit  the 
tux  was  assessed,  and  the  assessors  shall  be  responsible 
only  for  their  own  personal  faithfulness  and  integrity. 


Governor  to 
nominate  chair- 
man and  two 
associates  as 
b«ard  of  state 
assessors. 


Their  term  of 
office. 


Powers  of  state 
assessors  to  pn> 
cure  evidence. 


State  Board  of  Assessors. 

SECT.  63.  The  governor  shall  nominate,  and  by  and 
with  the  advice  and  consent  of  the  council  appoint,  one 
officer  to  be  designated  chairman  of  state  assessors  and 
two  others  one  of  whom  shall  be  taken  from  each  of  the 
two  principal  political  parties  to  be  associate  state  assess- 
ors, the  three  to  be  known  as  the  board  of  state  assessors, 
who  shall  take  and  subscribe  the  oath  provided  by  the 
constitution  of  this  state,  Art  IX  ,  Sec.  1,  and  hold 
their  offices  as  provided  in  the  following  section. 

SECT.  64.  The  term  of  office  of  the  chairman  of  said 
board  shall  be  for  six  years  and  until  a  successor  is  ap- 
pointed and  qualified  in  his  place.  The  term  of  one  of 
said  associate  assessors  under  such  first  appointment, 
shall  be  for  four  years  and  of  the  other  for  two  years, 
and  until  another  is  appointed  and  qualified  in  his  place. 
The  senior  member,  after  the  fitst  appointment,  as 
aforesaid,  shall  be  chairman  of  the  board.  Said  state 
assessors  shall  be  appointed  within  sixty  days  after  the 
approval  of  this  act,  and  shall  hold  their  first  meeting 
at  the  state  capitol  within  thirty  days  thereafter.  The 
term  of  appointment  of  such  assessors  thereafter  shall 
be  for  six  years,  excepting  appointments  made  to  fill 
uu expired  terms. 

SECT.  65.  Said  board  of  state  assessors  shall  have 
power  to  summon  before  them  and  examine  on  oath  any 
town  assessor  or  other  officer  or  person  whose  testimony 
they  shall  deem  necessary  in  the  proper  discharge  of 
their  duties,  and  may  require  such  witnesses  to  bring 
with  them,  for  examination,  any  records  or  other  public 


REPORT  OF  TAX  COMMISSION'.  115 

documents  in  their  custody  or  control  which  said  state 
-   may  deem  necessary  for  their  information  in 
the  performance  of  their  duties. 

i .  «;«;.     Any  two  of  said  board  shall  have  authority  TWO  a  quorum 
to  transact  all  business  appertaining  to  their  ollice,  but  to 
all  three  must  be  duly  notified  of  each  and  every  meet- 
ing  for  the  transaction  of   business.      In  case  of  the 
death,  resignation,  refusal,  or  inability  to  seive  of  any  _v.lt..llicies  }ll 
one  or  more  of  said  boar.l,  the  governor,  with  advice  g},eeii)oanl' how 
and  consent  of  the  council,  shall,  as  soon  as  may  be, 
fill  such  vacancy  by  appointment,  and  the  assessor  so 
appointed  shall  hold  said  office  for  the  balance  of  the 
term  of  the  person  in  whose  place  he  was  appointed. 

r.   r>7.     The    state  assessors   shall,  on  or  before  state  assessors 
the   first  day  of  April,  1892,  and   annually  thereafter,  SankTtttown 
on   or  before   said  day,  furnish  at  the   expense  of  the  u'" 
state,    to   the  assessors  of   the   several   towns,    blank 
inventories  sufficient   in   number  to    meet  the  require- 
ments of  this  ace.  and  in  most  convenient  form,  with 
suitable  interrogatories,  to  contain,  when  filled,  a  full— what  the 

blanks  mu-t 

statement  of  all  taxable  property  real  and  personal  of  contain. 
each  tax  payer  in  said  town  on  the  first  day  of  April  in 
said  year.  Said  blanks  shall  be  so  formulated  by  the 
state  assessors  as  to  require,  under  oath,  from  each 
person  and  corporation  such  full  information  as  to  each 
class  and  item  of  his  or  its  taxable  property,  real  and 
personal,  as  will  enable  the  town  assessors,  after  a  per- 
sonal examination  of  all  visible  property,  to  appraise 
all  of  such  property  at  its  just  value  in  money. 

SECT.  68.     Such  inventories  shall  also  contain,  when  Debts  owing  by 
filled,  a  statement  of  debts  actually  due  from  said  tax  Se  Snount'of 
payers  on  the  first  day  of  April,  to  the  amount  of  any  SiedTrom 
deduction  claimed  as  an  offset  to  debts  due  said  tax  debts  <lue  them' 
payers  ;  and  no  deduction  shall  be  made  in  the  list  of 
any  person,  by  reason  of  debts  owing   by  him.  unless 
such  statement  includes  the  name  and  place  of  residence 
of  each  creditor  to  whom  he  is  so   indebted   and  the 
amount  so  owing  by  him  to  each  creditor.     Xo  cleduc — no  deductions 

,.,,,,  ,  .      allowed  to 

tiou  shall  be   allowed  a  tax   payer  on  account  of   his  sureties. 

being  an  indorser  or  surety  for  another  nor  shall  any 

deduction  be  allowed  a  tax  paver  by  reason  of  any  joint  —deductions  to 

-,    .   .     ,  joint  debtors 

indebtedness,  except  to  the  amount  which  he  would|be  oah-  for  their 


116 


REPORT    OF    TAX    COMMISSION. 


several  proper- 

tionsofthe 

indebtedness, 
A  part  of  this 
on^ve 


state  assessors 
tbrs?epturnbof  nk9 
afionMoetowrl" 


Duties  of  state 
assessors. 


TO  report  to 
fo°und]°annnud 
ber  iX  Decem~ 


—more  detailed 

ments  required 
biennially. 


state  e^uai 


state  -i        rt 
to  visit  counties 

biennially  to  se- 

cure  informa- 

tion  and 

investigate 

charges  relating 

to  taxation.! 


obliged  to  pay  if  all  the  persons  jointly  bound  were  to 

.  ,  .        _    _., 

pay  equal  parts  or  the  debt. 

SECT  69.  The  state  assessors  shall  cause  to  be 
printed  upon  the  back  of  the  blank  inventories  sections 
six,  seven  and  forty-one  to  sixty-two  both  inclusive,  of 
this  act. 

SECT.  70.  Said  state  assessors  shall  seasonably  fur- 
llish  to  the  town  assessors  blanks  on  which  to  return 
the'  aggregates  required  by  section  fifty-five,  and  shall 
have  the  required  oath  printed  thereon. 

SECT.  71.  Said  state  assessors  shall  do  and  perform 
avj  £ne  ac^s  and  duties  now  required  by  law  to  be  done 
and  performed  by  the  state  treasurer  as  to  the  assess- 
ment of  taxes  on  wild  lands  ;  by  the  governor  and 
council  relating  to  the  assessing  and  taxing  of  railroad 
corporations  and  associations,  and  all  corporations, 
companies  or  persons  doing  telegraph,  telephone  or 
express  business  within  the  state,  and  shall  assess  all 
taxes  upon  corporate  franchises. 

SECT.  72.  The  state  assessors  shall  annually  before 
the  first  day  of  December,  make  a  report  to  the  gov- 
ernor  and  council  of  their  proceedings  and  shall  include 
therein  a  tabular  statement  of  all  statistics  derived 
from  returns  from  local  assessors,  with  schedules  of  all 
corporations  on  which  state  taxes  were  assesst  d  during 
the  year,  and,  for  the  years  in  which  they  shall  equalize 
the  valuation  of  the  state,  their  report  shall  include 
tabular  statements  of  the  state  valuation  by  towns  and 
counties. 

SECT.  73.  Said  state  assessors  shall  constitute  a  state 
board  of  equalization  whose  duty  it  shall  be  to  equalize 
the  state  tax  among  the  several  towns,  to  fix  the  valu- 
ation of  real  and  personal  estate  on  which  the  state  and 
county  taxes  shall  be  levied  in  each  town  ;  and  to  per- 
form the  duties  heretofore  devolving  upon  the  legislature 
in  the  apportioning  of  the  state  taxes  among  the  several 
towns  of  the  state. 

SECT.  74.  Said  state  assessors  shall  visit  officially 
every  county  in  the  state  at  least  once  in  two  years,  and 

J  J  J 

shall  there  sit  at  such  times  and  places  as  they  may 

J  J 

deem  necessary  to  secure  information  to  enable  them  to 
make  a  just  and  equal  assessment  ot  the  valuation  or 


RKPOKT    OF    TAX    COMMISSION.  117 

the  taxable  propt-rty  in  any  place  therein,  and  to  investi- 
gate charges  of  concealment  of  property  liable  to  assess- 
ment. Said  assessors  shall  give  such  public  notice  of 
their  sessions  as  they  may  deem  proper. 

SECT.  75      Said  s'ate  assessors  shall  be  provided  with  state  as*.-- 
suitable  rooms  in  the  state  house,  and  shall  be  furnished  ^Arw5l?SL 
liy  the  secretary  of  state  with  necessary  books,  blanks,  tl' 
>tationery,  printing,  notices  and  summonses,  and  may —may employ 
employ  such  clerical  assistance  as  they  shall  deem  neces-  c 
sary,  the  expenses  for  which  shall  be  audited  by  the  —expenses, 
governor  and  council. 

Si.(  r.  76.     A  statement  of  the  amount  of  the  assessed  Equalizing 
valuation  for  each  town,  after  adjustment  as  provided  aggregates  In 
by  section  seventy-eight,  the  aggregate  amount  for  each 
county,  and  for  the  entire  state  as  fixed  by  the  board 
of  equalization,  shall  be  certified  by  said  board   and 
deposited  in  the  office  of  the  secretary  of  state  as  soon 
as  completed,  and  before  the  first  day  of  December  pre- 
ceding the  regular  sessions  of  the  legislature.      The 
valuation  thus  determined  shall  be  the  basis  for  the  and  county 
computation  and  apportionment  of  the  state  and  county 
taxes,  until  the  next  biennial  assessment  and  equaliza- 
tion. 

SI-XT.   77.      Said  state  assessors  shall  be  held  to  a  State as,e830rs 
constant  attendance  upon  the  duties  of  their  office  ;  shall 
be  vigilant  and  prompt  in  the  correcting  and  equalizing 
of  valuations  and  in  the  investigation  of  charges  of  con- 
cealed property  liable  to  assessment.     Said  state  assess- 
ors shall  receive  a  salary  of  two  thousand  dollars  each, 
and  for  necessary  expenses  in  the  performance  of  their  —expense 
duties  such  sum  as  shall  be  allowed  by  the  governor  audited  by  gov- 
and  council  on  properly  itemized  accounts.  cou«ca™d 

SKIT.  78.  Said  state  assessors  shall  equalize  and  Their  powers  m 
adjust  the  assessment  list  of  each  town,  by  adding  to 
or  deducting  from  it  or  any  part  thereof,  such  amount 
as.  when  compared  with  valuations  in  other  towns  shall 
«. qualize  the  same  :  and  said  lists  after  they  have  been 
so  equalled  shall  constitute  the  general  list  of  the  state 
upon  v.  inch  state  and  county  taxes  shall  be  assessed. 

SLCT.  7(J.  If  the  assessors  of  any  town,  or  one  of  if  no  lists  are 
them,  shall  fail  to  appear  before  said  board  of  equaliza-  tovnTftMeiwo 
tion  or  to  transmit  to  them  the  lists  hereinbefore  named  Equalization, 


US 


REPORT    OF    TAX    COMMISSION. 


valuation  how 


wild  lauds  to 


description. 


. 

—  statement  of 

timber  permits, 
be  returned. 


within  ten  days  after  the  mailing  or  publication  of 
notice  or  notices  to  them,  to  so  appear  or  transmit  said 
lists,  the  said  board  may  in  its  discretion  report  the 
valuation  of  the  estates  and  property  and  lists  of  polls 
liable  to  taxation  in  the  town  so  in  default,  as  it  shall 
deem  just  and  equitable. 

SECT.  80.  The  land  agent  shall  prepare  and  deliver 
to  said  state  assessors  full  and  accurate  lists  of  all 
townships  or  parts  of  townships  or  lots  or  parcels  of 
wild  lands  in  this  state  sold  and  not  included  in  the  tax 
lists,  whether  conveyed  or  not,  with  the  fair  value 
thereof,  and  shall  lay  before  said  state  assessors  all 
information  in  his  possession  touching  the  value  and 
description  of  wild  lands  at  their  request  ;  also  a  state- 
ment  of  all  lands  on  which  timber  has  been  sold  or  a 
permit  to  cut  timber  has  been  granted  by  lease  or 
otherwise,  with  the  fair  value  thereof.  All  other  state 
officers,  when  requested,  shall  in  like  manner  lay  all 
information  in  their  possession,  touching  said  valuation 
before  said  state  assessors. 


Treasurer  of 
warrantsfor 


—tax  for  each 

Ieaarvteilbe 
ordered. 

What  state 

treasurer's 

warrant  shall 


State  Taxes. 

SECT.  81.  When  a  state  tax  is  ordered  by  the  legis- 
lature,  the  treasurer  of  state  shall  forthwith  send  his 
warrants  directed  to  municipal  officers  of  each  town  or 
other  place,  requiring  them  to  assess  upon  the  polls  and 
estates  of  each,  its  proportion  of  such  state  tax  for  the 
current  year  ;  and  shall  in  like  manner  send  like  war- 
rants for  the  state  tax  for  the  succeeding  year,  forth- 
with upon  the  expiration  of  one  year  from  the  time  such 
^ax  *s  so  ordered.  The  tax  for  each  year  shall  be  sepa- 
lately  ordered  and  apportioned  ;  and  the  amount  of  such 
proportion  shall  be  stated  in  the  warrants. 

SECT.  82.  The  treasurer,  in  his  warrant,  shall  require 
said  officers  to  make  a  tair  list  ot  their  assessments, 
setting  forth  in  distinct  columns  against  each  person's 
name,  how  much  he  is  assessed  for  polls,  how  much  for 
real  estate,  and  how  much  for  personal  estate,  distin- 
guishing any  sum  assessed  to  such  person  as  guardian, 
or  for  any  estate  in  his  possession  as  executor,  adminis- 
trator, or  trustee  ;  to  insert  in  such  list  the  number  of 


REPORT    OF    TAX    COMMISSION. 

acres  of  land  assessed  to  each  non-resident  proprietor, 
and  the  value  at  which  they  have  estimated  them ;  to 
commit  such  list,  when  completed  and  signed  by  a 
majority  of  them,  to  the  collector  or  constables  of  such 
town  or  other  place,  with  their  warrants  in  due  form* 
requiring  them  to  collect  and  pay  the  same  to  the  treas- 
urer of  state,  at  such  times  as  the  legislature,  in  the  act 
authorizing  such  tax,  directed  them  to  be  paid  ;  and  to 
return  a  certificate  of  the  names  of  such  officers,  and  the 
amount  so  committed  to  each,  one  month  at  least  before 
the  time  at  which  they  are  required  to  pay  in  such  tax. 


State    Taxation   of   Railroads. 

SECT.  83.     Every  steam  railroad  company,  incorpo-  Annual  returns 
rated  under  the  laws  of  the  State,  or  doing  business  comp^es. 
therein,  shall  annually,  between  the  first  and  fifteenth 
days  of  April,  return  to  the  secretary  of  state  under 
oath  of  its  treasurer,  the  amount  of  the  capital  stock  of 
the    corporation,    the    number    and    par   value    of    the 
shares,  and  a  complete  list  of   its  shareholders,  with 
their   places  of    residence  and  the    number  of  shares 
belonging  to  each    on   said    first   day  of  April.     The 
returns  shall   also    contain   a   statement  of   the  whole  —to  state  length 
length  of  its  line,  the  length  of  its  line  within  the  state,  assessed  value 

,         ,  /.    •,  j-  i  of  stations,  £c. 

and  the  assessed  value  m  each  town  of  its  stations  and 
other  property  taxed  by  municipalities. 

SECT.  84.     Every  corporation,  person  or  association,  Corporations  or 
operating  any  such  railroad  in  the  state,  shall  pay  to  STg 
the   treasurer  of  state,  for  the  state,  an  annual   excise  a 
tax,  for  the  privilege  of  exercising  its  franchises  in  the 
state,  which,  with  the  tax  provided  for  in  sections  four 
and  eighty-six,  is  in  place  of  all  taxes  upon  such  rail- 
road, its  property  and  stock.     There  shall  be  appor-  —state  shall 
tioned  and  paid   by  the  state  from  the  taxes  received 


under  this  and  the  following  section,  to  the  several  3'  thereS? 
cities  and  towns,  in  which  on  the  first  day  of  April  in 
each  year,  is  held  railroad  stock  exempted  from  other 
taxation,  an  amount  equal  to  one  per  cent,  on  the  value 
of  such  stock  on  that  day,  as  determined  by  the  state 
assessors  ;  provided,  hoicever^  that  the  total  amount  —proviso. 
thus  apportioned  on  account  of  any  railroad  shall  not 


120 


REPORT    OF    TAX    COMMISSION. 


Amount  of  tax, 
how  to  be 
ascertained. 


— railroads 
partly  outside 
the  state,  tax 
upon,  how  to  be 
ascertained. 


Steam  railroad 
companies 
taxed  for  sala- 


exceed  the  sum  received  by  the  state  as  tax  on  account 
of  such  railroad  ;  and  provided  further  ^  that  there  shall 
not  be  apportioned  on  account  of  any  railroad  and  its 
several  parts,  if  any,  operated  by  lease  or  otherwise,  a 
greater  part  of  the  whole  tax  received  from  such  rail- 
road and  its  several  parts,  than  the  proportion  which 
the  amount  of  capital  stock  of  such  railroad  and  its 
several  parts  owned  in  this  state  bears  to  the  whole 
amount  of  the  capital  stock  of  said  railroad  and  its 
several  parts. 

SECT.  85.  The  amount  of  such  annual  excise  tax 
shall  be  ascertained  as  follows  :  the  amount  of  the  gross 
transportation  receipts  as  returned  to  the  railroad  com- 
missioners for  the  year  ending  on  the  thirtieth  day  of 
September  preceding  the  levying  of  such  tax,  shall  be 
divided  by  the  number  of  miles  of  railroad  operated,  to 
ascertain  the  average  gross  receipts  per  mile  ;  when 
such  average  receipts  per  mile  do  not  exceed  two  thou- 
sand two  hundred  and  fifty  dollars,  the  tax  shall  be 
equal  to  one  quarter  of  one  per  cent,  of  the  gross  trans- 
portation receipts  ;  when  the  average  receipts  per  mile 
exceed  two  thousand  two  hundred  and  fifty  dollars  and 
do  not  exceed  three  thousand  dollars,  the  tax  shall  be 
equal  to  one-half  of  one  per  cent,  of  the  gross  receipts  ; 
and  so  on  increasing  the  rate  of  the  tax  one-quarter  of 
one  per  cent,  for  each  additional  seven  hundred  and 
fifty  dollars  of  average  gross  receipts  per  mile  or  frac- 
tional part  thereof.  When  a  railroad  lies  partly  within 
and  partly  without  the  state,  or  is  operated  as  a  part  of 
a  line  or  system  extending  beyond  the  state,  the  tax 
shall  be  equal  to  the  same  proportion  of  the  gross  re- 
ceipts in  the  state,  as  herein  provided,  and  its  amount 
shall  be  determined  as  follows  :  the  gross  transporta- 
tion receipts  of  such  railroad,  line  or  system,  as  the  case 
may  be,  over  its  whole  extent,  within  and  without  the 
state,  shall  be  divided  by  the  total  number  of  miles 
operated  to  obtain  the  average  gross  receipts  per  mile, 
and  the  gross  receipts  in  the  state  shall  be  taken  to  be 
the  average  gross  leceipts  per  mile  multiplied  by  the 
number  of  miles  operated  within  the  state. 

SECT.  86.  In  addition  to  all  other  taxes  now  pro- 
vided by  law,  every  corporation  operating  a  railroad 


REPOKT    OF    TAX    COMMISSION'.  121 


shall  pav  to  the  state  treasurer  such  a  sum  as  shall  be  nee  and 

,  ,  expenses  of 

its  pro  r<i'(i  part  of  the  amount  of  the  salary  and  ex-  railroad 

.,  .  ,      f  ,,     .        ,      ,       commissioners. 

penses  of  the  railroad  commissioners  and  of  their  clerk, 
to  be  determined  as  provided  in  the  foregoing  section 
for  computing  the  annual  excise  tax  on  steam  railroad.-. 

.  s;.     The  state  assessors,  on  or  before  the  first  Tax'  bow  fixed; 

notice  to 

day  of  each  April,  shall  determine  the  amount  of  such  companies, 
taxes  and  report  the  same  to  the  treasurer  of  state,  who 
shall  forthwith  give  notice  thereof  to  the  corporation, 
person  or  association,  upon  which  the  taxes  are  levied. 

i .  <S8       Said  taxes  shall  be  payable,  one-half  on  Tax,  payable  in 

July  and 

the  first  day  of  July  next  after  the  levy  is  made,  and  the  October. 

other  half  on  the  first  day  of  October  following.     If 

any  party  fails  to  pay  the  taxes  as  hereinbefore  required, 

the  treasurer  of  state  may  proceed  to  collect  the  same,  —treasurer 

J    l  shall  enforce 

with  interest,  at  the  rate  of  ten  per  cent,  a  year,  by  collection, 
action  of  debt,  in  the  name  of  the  State.     Said  taxes  —tax  to  be  a 

lien  and  take 

shall  be  a  lien  on  the  railroad  operated,  and  take  prece-  precedence 
deuce  of  all  other  liens  and  incumbrances. 

SKCT.  89.  Any  corporation,  person  or  association  Aggrieved 
aggrieved  by  the  action  of  the  state  assessors  in  deter- 
mining  the  taxes  through  error  or  mistake  in  calculat- 
ing  the  same,  may  apply  for  abatement  of  any  such 
excessive  taxes  within  the  year  for  which  such  taxes 
are  assessed,  and  if,  upon  re-hearing  and  re-examina- 
tion, the  taxes  appear  to  be  excessive  through  such 
error  or  mistake,  the  state  assessors  may  thereupon 
abate  such  excess,  and  the  amount  so  abated  shall  be 
deducted  from  any  tax  due  and  unpaid,  upon  the  rail- 
road upon  which  the  excessive  tax  was  assessed  ;  or, 
if  there  is  no  such  unpaid  tax,  the  governor  shall  draw 
his  warrant  for  the  abatement,  to  be  paid  from  any 
money  in  the  treasury  not  otherwise  appropriated. 

SECT.  90.     If  the  returns  required  bv  law,  in  relation  Further  returns 

may  be  required 

to  railroads,  are  found  insufficient  to  furnish  the  basis  by  railroad 

.  .  commissioners. 

upon  which  the  taxes  are  to  be  levied,  the  railroad  com- 
missioners shall  require  such  additional  facts  in  the 
returns  as  may  be  found  necessary  ;  and,  until  such 
returns  are  so  required,  or,  in  default  of  such  returns 
when  required,  the  state  assessors  shall  act  upon  the 
best  information  that  they  may  obtain.  The  railroad 


122 


REPORT    OF    TAX    COMMISSION. 


—railroad 
commissioners 
shall  have 
access  to  books 
of  railroad 
companies. 


—penalty  for 
refusing  to 
make  returns, 
or  for  making 
false  ones. 


commissioners  shall  have  access  to  the  books  of  rail- 
road companies,  to  ascertain  if  the  required  returns 
are  correctly  made  ;  and  any  railroad  corporation,  asso- 
ciation, or  person  operating  any  railroad  in  the  state,. 
which  refuses  or  neglects  to  make  the  returns  required 
by  law,  or  to  exhibit  to  the  railroad  commissioners  its 
books  for  the  purposes  aforesaid,  or  makes  returns 
which  the  president,  clerk,  treasurer,  or  other  person 
certifying  to  such  returns  knows  to  be  false,  forfeits 
not  less  than  one  thousand,  nor  more  than  ten  thousand 
dollars,  to  be  recovered  by  indictment,  or  by  au  action 
of  debt  in  any  county  into  which  the  railroad  operated 
extends. 


What  are 
included  a-s 
sleeping  care. 


— returns  to 
e»ate  assessors 
required,  of 
sleeping  car 
companies 
doing  business 
iu  this  state. 


— tax  of  two 
dollars  per  one 
hundred  dollars 
of  gross 
receipts. 


—penalties  for 
failure  to  report 
and  pay  tax. 


Taxation  of  Sleeping  Cars. 
SECT.  91.  Every  joint-stock  association,  company 
or  corporation,  incorporated  under  the  laws  of  any 
other  state  and  conveying  to,  from  and  through  this 
state  or  any  part  thereof,  passengers  and  travelers  in 
palace  cars,  drawing-room  cars,  parlor  cars,  sleeping 
cars  or  chair  cars,  on  contract  with  any  railroad  com- 
pany, or  the  manager,  lessee,  agent  or  receiver  thereof, 
shall  be  held  and  deemed  to  be  a  sleeping  car  company. 
Every  such  sleeping  car  company  doing  business  in 
this  state  shall  annually,  between  the  first  day  of  April 
and  the  first  day  of  June,  report  to  the  state  assessors, 
under  oath  of  an  officer  or  agent  of  such  corporation, 
the  gross  amount  of  all  its  receipts  within  or  without 
the  state  for  fares  earned  or  business  done  by  such 
company  within  this  state  for  the  year  then  next  pre- 
ceding the  said  first  day  of  April ;  and  in  computing 
such  gross  receipts  the  same  shall  be  in  the  proportion 
that  the  distance  travelled  in  this  state  bears  to  the 
^vhole  distance  paid  for.  At  the  time  of  making  such 
report,  such  company  shall  pay  into  the  treasury  of 
the  state  the  sum  of  two  dollars  on  every  one  hundred 
dollars  of  such  gross  receipts.  Every  sleeping  car 
company  failing  or  refusing,  for  more  than  thirty  days- 
after  the  first  of  June,  to  render  an  accurate  account 
of  such  gross  receipts,  as  above  provided,  and  to  pay 
the  required  tax  thereon,  forfeits  twenty-five  dollars, 


REPORT    OF    TAX    COMMISSION.  123 

for  each  additional  day  such  report  and  payment  shall 
be  delayed,  to  be  recovered  in  the  name  of  the  state  of 
Maine,  at  the  instance  of  the  state  treasurer,  in  any 
court  of  competent  jurisdiction,  and  the  attorney  gen- 
eral shall  conduct  such  suit ;  and  such  sleeping  car 
company  so  failing  or  refusing  shall  be  prohibited  from 
carrying  on  such  business  until  such  payment  is  made. 
All  railroad  companies  in  this  state,  or  the  persons  —railroad 

companies 

managing  or  operating  the  same,  are  prohibited  from  prohibited  from 

...  using  cars  of 

hauling  any  cars  of  any  sleeping  car  company  while  so  companies  in 

in  default,  and  for  each  violation  of  this   prohibition 

shall  be  liable  to  pay  to  the  state  of  Maine  the  sum  of  —penalty. 

one   hundred  dollars,   to  be   recovered  in  the   proper 

action  instituted  by  the  attorney  general  in  the  name 

of  the  state,  at  the  request  of  the  state  treasurer. 


Telegraph    Companies. 

SECT.  92.     Every  telegraph  corporation,  company,  or  Taxation  of 
person  doing  business  within  the  state  shall  annually  compaSea,  *x 
pay  into  the  state  treasury  a  tax  of  two  and  a  half  per  ^ortm. 
cent,  on  the  value  of  any  telegraph  line  owned  by  said 
corporation,  company  or  person  within    the  state,  in- 
cluding   all   poles,   wires,   insulators,   office    furniture, 
batteries  and  instruments,  whether  owned  or  leased. 

SECT.   93.     Every    such    corporation,    company   or  Returns  to 

in  n  i     c          J.T       .CJ?.L  i     i  c  state  assessors. 

person  shall  annually,  on  or  before  the  fifteenth  day  of 
April,  return  to  the  state  assessors,  under  oath  of  its 
superintendent,  the  amount  and  value  of  all  the  prop- 
erty enumerated  in  the  preceding  section,  owned  or 
leased  by  it  within  the  limits  aforesaid,  with  the  names 
and  residences  of  all  shareholders  in  the  state,  and  the 
number  of  shares  owned  by  each  on  the  first  day  of 
April  annually,  together  with  the  number  of  shares 
owned  by  non-residents,  and  the  state  assessors  shall 
determine  said  values  and  assess  said  tax  thereon  by 
the  first  day  of  May  annually.  Said  state  assessors 
shall  thereupon  certify  said  assessment  to  the  state 
treasurer  who  shall  forthwith  notify  the  several  parties 
assessed. 

SECT.  94.     Said  tax  shall  be  paid  into  the  treasury 
on  or  before  the  first  day  of  September,  annually,  and 


124 


REPORT    OF    TAX    COMMISSION. 


is  in  place  of  all  state  or  municipal  taxation  on  any  of 
the  property  or  shares  of  said  corporations,  companies 
\or  persons. 


Taxation  of 
telephone 
companies, 
two  and  one- 
half  per  cent. 
ad  valorem  on 
property 
owned. 


— same  on  prop- 
erty subject  to 
royalty  or  lease . 


Returns  to  state 
assessors. 


— exemption 
from  other 
taxes. 


Penalty  for 

neglect- 


Telephone  Companies. 

SECT.  9f).  Every  telephone  corporation,  company  or 
person  doing  business  within  the  state,  shall  annually 
pay  into  the  state  treasury  a  tax  of  two  and  a  half  per 
cent,  on  the  value  of  any  telephone  line  owned  by  said 
corporation,  company  or  person,  within  the  state,  in- 
cluding all  poles,  wires,  insulators,  transmitters,  tele- 
phones, batteries,  instruments,  telephonic  apparatus 
and  office  furniture  ;  and  also  a  tax  of  two  and  a  half 
per  cent,  on  the  value  of  any  such  telephones  or  other 
telephonic  apparatus  or  patent  of  any  description  used 
but  not  owned  by  srch  corporation,  company  or 
person,  and  under  lease  from  or  subject  to  the  payment 
of  royalty  for  its  use  to  any  corporation  or  person 
beyond  the  limits  of  this  state. 

SECT.  96.  Every  such  corporation,  company  or  per- 
son shall  annually  on  or  before  the  fifteenth  day  of 
April,  return  to  the  state  assessors  under  oath  of  its 
superintendent,  the  number  of  telephones,  batteries  and 
instruments,  the  amount,  and  value  of  all  the  property 
enumerated  in  the  preceding  section,  owned  or  leased 
by  it  within  the  limits  aforesaid,  on  the  first  day  of 
April,  annually,  and  the  state  assessors  shall  determine 
said  values  and  assess  said  tax  thereon  by  the  first  day 
of  May  annually.  The  state  assessors  shall  thereupon 
certify  said  assessment  to  the  state  treasurer,  who  shall 
forthwith  notify  the  several  parties  assessed.  Said  tax 
shall  be  paid  into  the  treasury  on  or  before  the  first  day 
of  September,  annually,  and  is  in  place  of  all  state  or 
municipal  taxation  on  any  property  or  shares  of  said 
corporations,  companies  or  persons  and  on  any  property 
so  leased  by  them.  Taxes  paid  on  leased  instruments 
or  property  may  be  charged  by  the  corporation,  com- 
pany or  person  against  the  sum  payable  for  the  use  or 
royalty  of  the  same. 

SECT.  97.  Any  corporation,  company  or  person  neg- 
lecting to  make  the  returns  required  by  sections  ninety- 
three  and  ninety-six,  forfeits  twenty-five  dollars  for 


REPORT    OF    TAX    COMMISSION.  125 

every  day's  neglect,  to  be  recovered  by  an  action  of 
debt  in  the  name  of  the  state. 

Express    Companies. 

M:< T.   y.s.     Every  express  corporation,  company  or  Taxation  of 

.,          _  express 

person  doing  express  business  on  any  railroad,  steam-  companies. 

boat  or  vessel  in  the  state,  shall,  annually,  before  the 

first  clay  of  May,  apply  to  the  treasurer  of  state  for  a 

license  authoi  izing  the  carrying  on  of  said  business  ;  annually.       ' 

and  every  such  corporation,  company  or  person  shall 

annually  pay  to  the  treasurer  of  state,  three-fourths  of  _tox  on  ^Q^ 

one  per  cent,  of  the  gross  receipts  of  said  business  for  re 

the   year  ending  on  the   first  day  of   April  preceding. 

Said  three-fourths  of  one  per  cent,  shall  be  on  all  of 

said  business  done  in  the  state,  including  a  pro  rata  part 

on    all  express  business  coming  from  other  states  or 

countries  into  this  state,   and  on  all  going  from  this 

state  to  other  states  or  countries. 

SECT.  99.  Every  such  corporation,  company  or  per-  Returns  to  state 
son  shall,  by  its  properly  authorized  agent  or  officer, 
annually,  on  or  before  the  fifteenth  day  of  May,  make  :^ 
a  return  under  oath  to  the  state  assessors,  stating  the 
amount  of  said  receipts  for  all  express  matters  carried 
within  the  state  as  specified  in  the  preceding  section, 
including  such  pro  ruta  ;  whereupon  the  state  assessors 
shall  on  or  before  the  first  day  of  June  following, 
assess  the  tax  therein  provided,  and  forthwith  certify 
the  same  to  the  treasurer  of  state,  who  shall  thereupon 
notify  sak1  corporations  or  companies  or  persons,  and 
said  taxes  shall  be  paid  into  the  state  treasury  on  or  _when  tax 
before  the  first  day  of  September  following. 

SECT.  100.  The  tax  assessed  upon  express  corpora-  Exemption 
tions  or  companies  and  persons  as  aforesaid,  is  in  place 
of  all  local  taxation,  except  that  real  estate  owned  by 
such  corporations  or  companies  or  persons  shall  be 
taxed  in  the  municipality  where  the  same  is  situated, 
as  non-resident  real  estate. 

SECT.   101.      Any   corporation,  company  or  person  Penalty  for  neg- 
neglecting  to  make  returns  according  to  section  ninety- 
nine,  forfeits  twenty-five  dollars  for  every  day's  neglect, 
to  be  recovered  by  action  of  debt  in  the  name  of  the 
state. 


126 


REPORT    OF    TAX    COMMISSION. 


Collateral 
inheritance  tax 
imposed. 


Tax  on  remain- 
der man  how 
ascertained. 


On  legacy  to 
executor  or 
trustee. 


Taxation  of  Collateral  Inheritances. 

SECT.  102.  All  property  within  the  jurisdiction  of 
this  state,  and  any  interest  therein,  whether  belonging 
to  inhabitants  of  this  state  or  not,  and  whether  tangible 
or  intangible,  which  shall  pass  by  will  or  by  the  intes- 
tate laws  of  this  state,  or  by  deed,  grant,  sale,  or  gift 
made  or  intended  to  take  effect  in  possession  or  enjoy- 
ment after  the  death  of  the  grantor,  to  any  person 
in  trust  or  otherwise,  other  than  to  or  for  the  use  of 
the  father,  mother,  husband,  wife,  lineal  descendant, 
adopted  child,  the  lineal  descendant  of  any  adopted 
child,  the  wife  or  widow  of  a  son,  or  the  husband  of  the 
daughter  of  a  decedent,  shall  be  liable  to  a  tax  of  two 
and  a  half  per  centum  of  its  value,  above  the  sum  of 
five  hundred  dollars,  for  the  use  of  the  state,  and  all 
administrators,  executors,  and  trustees,  and  any  such 
grantee  under  a  conveyance  made  during  the  grantor's 
life  shall  be  liable  for  all  such  taxes,  with  lawful  inter- 
est as  hereinafter  provided,  until  the  same  shall  have 
been  paid  as  hereinafter  directed 

SECT.  103.  When  any  person  shall  bequeath  or  de- 
vise any  property  to  or  for  the  use  of  father,  mother, 
husband,  wife,  lineal  descendant,  an  adopted  child,  the 
lineal  descendant  of  any  adopted  child,  the  wife  or 
widow  of  a  son,  or  the  husband  of  a  daughter  during 
life  or  for  a  term  of  years,  and  the  remainder  to  a  col- 
lateral heir,  or  to  a  stranger  to  the  blood,  the  value  of 
the  prior  estate  shall,  within  sixty  days  after  the  death 
of  the  testator,  be  appraised  in  the  manner  hereinafter 
provided,  and  deducted,  together  with  the  sum  of  five 
hundred  dollars,  from  the  appraised  value  of  such  prop- 
erty, and  said  tax  on  the  remainder  shall  be  payable 
within  one  year  from  the  death  of  said  testator,  and, 
together  with  any  interest  that  may  accrue  on  the  same, 
be  and  remain  a  lien  on  said  property  till  paid  to  the 
state. 

SECT.  104.  Whenever  a  decedent  appoints  one  or 
more  executors  or  trustees,  and  in  lieu  of  their  allow- 
ance makes  a  bequest  or  devise  of  property  to  them 
which  would  otherwise  be  liable  to  said  tax,  or  appoints 
them  his  residuary  legatees,  and  said  bequests,  devises, 


REPORT    OF    TAX    COMMISSION.  127 

or  residuary  legacies  exceed  what  would  be  a  reasonable 
compensation  for  their  services,  such  excess  shall  be 
liable  to  such  tax,  and  the  court  of  probate  having 
jurisdiction  of  their  accounts  shall  determine  what 
shall  be  such  reasonable  compensation. 

SK< T.  105.  All  taxes  imposed  by  this  act  shall  be  Tax,  when 
payable  to  the  treasurer  of  state  by  the  executors,  ad- 
ministrators, or  trustees  within  one  year  from  the  death 
of  said  testator,  or  intestate,  or  the  qualification  of  said 
trustee  :  and  if  the  same  are  not  so  paid,  interest  at  the 
rate  of  nine  per  centum  shall  be  charged  them  and  col- 
lected from  the  time  said  tax  became  due. 

SECT.   106.     Any  administrator,  executor,  or  trustee,  Administrator, 

,         .         .          ,  v  .  i     etc. ,  to  collect 

having  in  charge  or  trust  any  property  subject  to  such  or  retain  tax. 
tax,  shall  deduct  the  tax  therefrom,  or  shall  collect  the 
tax  thereon  from  the  legatee  or  person  entitled  to  said 
property,  and  he  shall  not  deliver  any  specific  legacy 
or  property  subject  to  said  tax  to  any  person  until  he 
has  collected  the  tax  thereon. 

SECT.   107.     Whenever  any  legacies  subject  to  said  Tax  on  legacy 

charged  on  real 

tax  shall  be  charged  upon  or  payable  out  of  any  real  estate, 
estate,  the  heir  or  devisee,  before  paying  the  same, 
shall  deduct  said  tax  therefrom  and  pay  it  to  the 
executor,  administrator,  or  trustee,  and  the  same  shall 
remain  a  charge  upon  said  real  estate  until  it  is  paid  ; 
and  payment  thereof  shall  be  enforced  by  the  executor, 
administrator,  or  trustee,  in  the  same  manner  as  the 
payment  of  the  legacy  itself  could  be  enforced. 

SECT.   108.     If  any  such  legacy  be  given  in  money  Tax on  e8tate 
to  any  person  for  a  limited  period,  such  administrator,  tor^ears- 
executor,  or  trustee  shall  retain  the  tax  on  the  whole 
amount ;  but  if  it  be  not  in  money,  he   shall  make  an 
application  to  the  judge  of  probate  having  jurisdiction 
of  his  accounts  to  make  an  apportionment,  if  the  case 
require  it,  of  the  sum  to  be  paid  into  his  hands  by  such 
legatee  on  account  of  said  tax  and   for  such   further 
order  as  the  case  may  require. 

SECT.    109.     All  administrators,  executors,  and  trus-  Bale  of  estate 

to  P  IV  tUX. 

tees  shall  have  power  to  sell  so  much  of  the  estate  of 
the  deceased  as  will  enable  them  to  pay  said  tax  in  the 
same  manner  as  they  may  be  empowered  to  do  for  the 
payment  of  his  debts. 


128 


REPORT    OF    TAX    COMMISSION. 


Inventory  of 
estate  subject  to 
tax  to  be  sent 
state  treasurer. 


Duty  of  execu- 
tor, etc.,  as  to 
real  estate  be- 
coming subject 
to  tax. 


Refunding 
over-paid  tax. 


Value  of  prop- 
erty, how 
ascertained.. 


— appraisal 
provided  for. 


— appraisers' 
lees. 


SECT.  110.  A  copy  of  the  inventory  of  every  estate, 
any  part  of  which  may  be  subject  to  a  tax  under  the 
provisions  of  sections  one  hundred  and  two  to  one  hun- 
dred and  eighteen  inclusive,  or  if  the  same  can  be  con- 
veniently separated,  then  a  copy  of  such  part  of  such 
inventory  with  the  appraisal  thereof,  shall  be  sent  by 
mail  by  the  register  or  the  judge  of  the  court  of  probate 
in  which  such  inventory  is  filed,  to  the  state  assessors- 
within  ten  days  after  the  same  is  filed.  The  fees  for 
such  copy  shall  be  paid  by  the  executor,  administrator, 
or  trustee,  and  allowed  in  his  account. 

SECT.  111.  Whenever  any  of  the  real  estate  of  a 
decedent  shall  so  pass  to  another  person  as  to  become 
subject  to  said  tax,  the  executor,  administrator,  or 
trustee  of  the  decedent  shall  inform  the  state  assessors 
thereof  within  six  months  after  he  has  assumed  the 
duties  of  his  trust,  or  if  the  fact  is  not  known  to  him 
within  that  time,  then  within  one  month  after  it  does 
become  so  known  to  him. 

SECT.  112.  Whenever  for  any  reason  the  devisee, 
legatee,  or  heir  who  has  paid  any  such  tax  shall  refund 
any  portion  of  the  property  on  which  it  was  paid,  or  it 
shall  be  judicially  determined  that  the  whole  or  any 
part  of  such  tax  ought  not  to  have  been  paid,  said  taxr 
or  the  due  proportional  part  of  said  tax,  shall  be  paid 
back  to  him  by  the  executor,  administrator,  or  trustee. 

SECT.  113.  The  value  of  such  property  as  may  be 
subject  to  said  tax  shall  be  its  actual  market  value  as 
found  by  the  judge  of  probate  ;  but  the  state  assessors, 
or  any  person  interested  in  the  succession  to  said  prop- 
erty, may  apply  to  the  judge  of  probate  having  juris- 
diction of  the  estate,  and  on  such  application  the  judge 
shall  appoint  three  disinterested  persons,  who,  being 
first  sworn,  shall  view  and  appraise  such  property  at 
its  actual  market  value  for  the  purposes  of  said  tax, 
and  shall  make  return  thereof  to  said  probate  court, 
which  return  may  be  accepted  by  said  court  in  the  same 
manner  as  the  original  inventory  of  such  estate  is 
accepted,  and  if  so  accepted  it  shall  be  binding  upon 
the  person  by  whom  this  tax  is  to  be  paid,  and  upon 
the  state.  And  the  fees  of  the  appraisers  shall  be  fixed 
by  the  judge  of  probate,  and  paid  by  the  executor, 


REPORT    OF    TAX    COMMISSION.  129 

administrator,  or  trustee.     In  case  of   an  annuity  or  —annuities, 
life  estate  the  value  thereof  shall  be  determined  by  the 
so  called  actuaries'  combined  experience  tables  and  five 
per  centum  compound  interest. 

r.   114.     The   court   of    probate,    having   either  probate  court 
principal  or  ancillary  jurisdiction  of  the  settlement  of  taTqueVtionB 
the  estate  of   the  decedent,  shall  have   jurisdiction  to  de^seslnd 
hear  and  determine  all  questions  in  relation  to  said  tax  lnhentances- 
that  may  arise  affecting  any  devise,  legacy,  or  inher- 
itance under  this  act,    subject  to   appeal  as  in  other 
s,   and   the   attorney  general   shall  represent    the 
interests  of  the  state  in  any  such  proceedings. 

SECT.  115.     Every  judge  of  probate  shall,  as  of  ten  pr0bate  judge 
as  once  in  six  mouths,  render  to  the  state  assessors  a 
statement  of  the  property  within  the  jurisdiction  of  his 
court  that  has  become  subject  to  said  tax  during  such  jecStuch  tax." 
period,  the  name  of  the  testator,  intestate  or  grantor 
and  the  name  of  the  beneficiaiy  whose  estate  is  so  tax- 
able, and  amount  of  such  taxes  as  will  accrue  during 
the  next  six  mouths,  so  far  as  the  same  can  be  deter- 
mined from  the  probate  records,  and  the  number  and 
amount  of  such  taxes  as  are  due  and  unpaid. 

SECT.  116.     The  fees  of  judges  or  registers  of  probate  Fees  of  judges 
for  the  duties  required  of  them  by  this  act  shall  be,  for  oT^/obJte"8 
each  order,  appointment,  decree,  judgment,  or  approval 
of  appraisal  or  report  required  hereunder,  fifty  cents  ; 
and  for  copies  of  records,  the  fees  that  are  now  allowed 
by  law  for  the  same.     And  the  administrators,  execu- 
tors, trustees,  or  other  persons  paying  said  tax  shall  be 
entitled  to  deduct  the  amount  of  all  such  fees  paid  to 
the  judge  or  register  of  probate  from  the  amount  of 
said  tax  to  be  paid  to  the  treasurer  of  state. 

SECT.  117.  No  final  settlement  of  the  account  of  any  Taxes  must  be 
executor,  administrator,  or  trustee  shall  be  accepted  or 
allowed  by  any  judge  of  probate  unless  it  shall  show, 
and  the  judge  of  said  court  shall  find,  that  all  taxes, 
imposed  by  the  provisions  of  this  act,  upon  any  property 
or  interest  therein  belonging  to  the  estate  to  be  settled 
by  said  account,  shall  have  been  paid,  and  the  receipt 
of  the  treasurer  of  state  for  such  tax  shall  be  the  proper 
voucher  for  such  payment. 

9 


130 


REPORT    OF    TAX    COMMISSION. 


Construction  of 


SECT.  118.  In  the  foregoing  sections  relating  to  col- 
lateral inheritances  the  word  "person"  shall  be  construed 
to  include  bodies  corporate  as  well  as  natural  persons  ; 
the  word  "property"  shall  be  construed  to  include  both 
real  and  personal  estate,  and  any  form  of  interest 
therein  whatsoever,  including  annuities. 


fore?gn°Si8ur- 
comePan?esSUrety 


—proviso,  de- 

earaedn  °f  Un 
premiums. 


Returns  to 

insurance  com- 

mission 


—state  assess- 
taxe^by866 

—state  treas- 

compante^oF 
assessment. 


Insurance  Companies. 

SECT.  119.  Every  insurance  company  or  association 
an(*  surety  company  which  does  business  in  the  state, 
not  incorporated  or  associated  under  its  laws,  shall,  as 
hereinafter  provided,  annually  pay  a  tax  upon  the  gross 
amount  of  all  premiums  received,  whether  in  cash  or  in 
notes  absolutely  payable,  on  contracts  made  in  the  state 
for  insurance  of  life,  property  or  interests  or  contracts 
of  guaranty  therein  at  the  rate  of  two  per  cent,  a  year  ; 
provided  however,  that  so  much  of  any  of  said  premiums 
as  may  nave  ^een  returned  during  the  year  to  the  insured 
or  person  guaranteed,  as  not  earned,  shall  first  be  de- 
ducted from  said  gross  amount  ;  and  provided  further, 
that  nothing  in  this  section  shall  be  so  construed  as  to 
allow  dividends  in  scrip  or  otherwise  in  stock,  mutual  or 
mixed  companies  to  be  considered  return  premiums. 

SECT.  120.     Every  company  or  association  and  surety 

,  .    ,     ,  -..  ,.  ,     . 

company  which  by  the  preceding  section  is  required  to 
pay  a  tax,  shall,  on  or  before  the  thirty-first  day  of  each 
January,  make  a  return  under  oath,  to  the  insurance 
commissioner,  stating  the  amount  of  all  premiums 
received  by  said  company,  either  in  cash  or  notes 
absolutely  payable,  during  the  year  ending  on  the 
thirty-first  day  of  December  previous,  also  the  amount 
to  be  deducted  therefrom,  under  the  preceding  section, 
specifying  the  whole  amount  thereof,  and  the  amount 
of  each  deduction  and  to  whom  paid.  Said  tax  shall 
be  assessed  by  the  state  assessors  on  or  before  the  first 
day  of  June,  upon  the  certificate  of  the  insurance  com- 
missioner, to  be  seasonably  furnished  therefor,  the  same 
to  be  paid  on  or  before  the  first  day  of  July  following. 
Tne  state  treasurer  shall  notify  the  several  companies  of 
^oe  assessrnent?  and  unless  the  same  is  paid  as  at'ore- 
said,  the  commissioner  shall  suspend  the  right  of  the 


REPORT    OF    TAX    COMMISSION.  131 

company  to  do  any  further  business  in  the  state  until 
the  tax  is  paid. 

SI--IT.  121.     If  any  insurance  company,  association  or  Company  m-jr- 

•'  lectiner  to  make 

smvtv  company  refuses  or  neglects  to  make  the  return  return*,  stute 

J  J  assessors  to  fix 

required  by  the  preceding  section,  the  state  assessors  tax. 
shall  make  such  assessment  on  such  company  or  asso- 
ciation as  they  deem  just,  and  unless  the  same  is  paid  —failure  to  pay 
on  demand,  such   company  or  association  shall  do  no 


more  business  in  the  state,  and  the  insurance  coinrnis-  Ul 
siouer  shall  give  notice  accordingly.     Whoever,  after 
such  notice,  does  business  in  the  state  for  such  company 
or  association,  is  liable  to  the  penalty  provided  in  sec- 
tion seventy-three  of  chapter  forty-nine. 

SECT.  122.  Any  insurance  company  incorporated  by  Reciprocal  tax- 
n  state  or  country  whose  laws  impose  upon  insurance  a 
companies  chartered  by  this  state  any  greater  tax  than 
is  herein  provided,  shall  pay  the  same  tax  upon  busi- 
m  ->  done  by  it  in  this  state,  in  place  of  the  tax  above 
provided  ;  and  the  insurance  commissioner  may  require 
the  return  upon  which  such  tax  may  be  assessed  to  be 
made  to  him,  and  the  state  assessors  shall  assess  such 
tax  ;  and  if  it  is  not  paid  as  provided  in  section  one 
hundred  and  twenty  the  insurance  commissioner  shall 
suspend  the  right  of  said  company  to  do  business  in 
this  state. 

Unlicensed  Insurance  Companies. 
SECT.  123.     No  person  shall  act  as  an  inspector  of  inspectors  of 
property  for  any  insurance  company  or  association  of' 
companies,   of   this    state,    or   of    any   other    state    or 
country  not  licensed  to  do  business  in  Maine,  until  he 
has  received  a  license  therefor  from  the  insurance  com- 
missioner, authorizing  him  as  representative  of  the  com- 
pany stated,  to  inspect  property  for  said  company  ;  and 
such  license  shall  continue  until  the  first  day  of  the  next 
January  and  may  be  renewed  from  year  to  year  ii  the 
insurance  commissioner  deem  it  advisable.      For  each  —  lieew*  fee. 
such  license  or  renewal  the  insurance  commissioner  shall 
receive  twenty  dollars  for  the  state.       If   any  person 
without  first  sfivino-  such  bond  and  receiving  such  license  —penalty  for 

inspection  with- 

mspects  any  property  for  any  such  unauthorized  company  out  license  from 


132 


REPORT    OF    TAX    COMMISSION. 


insurance 
commissioner. 


Inspector  to 
make  sworn 
return  to  insur- 
ance commis- 
sioner annually 


— what  it  must 
contain. 


Inspector  to 
give  bonds. 


— conditions  of 
bond. 


or  association  of  companies  or  offers  to  make  such  inspec- 
tion upon  solicitation  of  the  owners  of  property  or  persons 
in  possession  thereof  or  otherwise,  or  in  any  way  per- 
forms the  work  of  an  inspector  or  solicitor  of  insurance 
risks,  he  shall  be  punished  by  a  fine  not  exceeding  five 
hundred  dollars  or  by  imprisonment  not  exceeding  sixty 
da}s  for  each  offence,  the  fine  to  be  recovered  as  pro- 
vided in  section  eighty-four  of  chapter  forty-nine. 

SECT.  124.  Each  inspector  shall  keep  a  correct 
account  of  all  property  by  him  inspected,  and,  on  or 
before  the  thirty-first  day  of  January  of  each  year  make 
a  sworn  statement  and  return  to  the  insurance  commis- 
sioner upon  blanks  provided  by  said  commissioner,  of 
all  property  insured  by  the  company  or  companies  he 
represents,  based  upon  his  inspections,  for  the  year 
ending  December  thirty-first  preceding,  with  the  amount 
of  insurance  written  thereon,  the  company  or  companies 
in  which  insured,  and  the  amount  received  by  said 
company  or  companies  as  premiums. 

SECT.  125.  Every  such  inspector  before  receiving  a 
license  shall  be  required  to  give  bond  to  the  insurance 
commissioner  for  the  state  in  such  sum  and  with  such 
sureties  resident  in  this  state  as  the  insurance  commis- 
sioner may  approve,  conditioned  for  the  faithful  per- 
formance of  his  duties  as  prescribed  by  this  act  and  for 
the  payment  of  all  taxes  assessed  against  the  company 
or  companies  he  represents,  in  case  such  company  or 
companies  neglect  to  pay  said  taxes  within  the  time 
provided. 


Taxation  of  life 
insurance  com- 


panies. 


— real  estate 
locally  taxed. 


— on  gross 
amount  of 
premiums  and 
surplus,  two  per 
cent,  after  de- 
ducting value  of 
real  o state. 


Domestic  Life  Insurance  Companies. 
SECT.  126.  Every  life  insurance  company  or  associa- 
tion organized  under  the  laws  of  this  state,  in  lieu  of 
all  other  taxation  shall  be  taxed  as  follows  :  First,  its 
real  estate  shall  be  taxed  in  the  town  in  which  such 
real  estate  is  situated,  like  other  real  estate  therein. 
Second,  it  shall  pay  to  the  state  treasurer,  for  the  state 
a  tax  of  two  per  cent,  upon  all  premiums,  whether  in 
cash  or  notes  absolutely  payable,  received  from  resi- 
dents of  this  state  during  the  year  preceding  the  assess- 
ment, as  hereinafter  provided.  Third,  it  shall  pay  to 


REPORT    OF    TAX    COMMISSION'.  133 

the  stiite  treasurer  for  the  state  a  tax  of  three-fourths 
of  one  per  cent,  per  annum  on  its  surplus  computed 
according  to  the  laws  of  this  state,  after  deducting  the 
value  of  its  real  estate  in  this  state  as  fixed  in  deter- 
mining such  surplus.  Said  surplus  shall  be  determined 
by  the  insurance  commissioner,  and  his  certificate  there- 
of to  the  state  assessors  shall  be  final,  and  said  assessors 
shall  assess  said  taxes  on  such  premiums  and  surplus. 

SECT.  127.     Every  such  company  shall  include,  in  its  Returns  to 
annual  return  to  the  insurance  commissioner,  a  state-  commissioner, 
ment  of  the  gross  amount  of  premiums  as  provided  in 
the  preceding  section,  and  of  the  real  estate  held  by  it 
in  this  state  on  the  thirty-first  day  of  December  pre- 
ceding 

SECT.  128.      Sections  one  hundred  and  twenty  and  sections  120  & 
one  hundred  and  twenty-one,  so  far  as  not  inconsistent  m  appllc 
herewith  shall  apply  to  such  companies  or  associations. 


Savings  Banks  and  Trust  Companies. 
SECT.  129.     Every  savings  bank,  institution  for  sav-  Taxation  of 

savings  banks 

ings  and  trust  and  loan  association  incorporated  under  and  trust  and 
the  laws  of  the  state  shall,  semi-annually,  on  or  before  tions. 
the  second  Mondays  of  May  and  November,  make  a 
return  to  the  state  assessors,  signed  and  sworn  to  by  its  —returns  to 

J  state  asses«ers, 

treasurer,  of  the  average   amount  of  its  deposits   and 
accumulations  for  the  six  months  preceding  each  of  said 
days,  deducting  an  amount  equal  to  the  amount  of  United 
States  bonds  and  shares  of  corporation  stocks  such  as 
are  by  law  of  this  state  free  from  taxation  to  the  stock- 
holders and  the  assessed  value  of  real  estate  owned  by 
said  bank,   institution  or  association,   together  with  a 
statement  in.detail  of  its  loans,  investments  and  deposits 
within  and  without  the  state  in  separate  columns  with 
aggregates.     For  wilfully  making  a  false  return,  the  cor- 
poration treasurer  forfeits    not  less  than  five  hundred  _peuaity  for 
nor  more  than  five  thousand  dollars.      Such  treasurer  returnf?alse 
shall  pny  to  the  treasurer  of  state  a  tax  on  account  of  _tax  payable  to 
its    deposits    and    accumulations    as  follows :      On    so  g't^esurerot 
much  of  such  funds  as  is  loaned  to  persons  resident 
or  corporations  located  and  doing  business  in  this  state, 
and  so  much  as  is  invested  in  securities  of  this  state 


134 


REPORT    OF    TAX    COMMISSION. 


Tax,  how  to  be 


— how  appro- 
priated. 


—when  pay- 
able. 


Deposits  are 
exsmpt  from 
municipal  taxa- 
tion; but  not 
land  held  by 
bank. 


Return  of  bank 
stock  pledged  as 
collateral,  shall 
be  made  to 
assessors  of 
municipalities 
where  owners 
reside. 


public  or  private,  or  on  hand  or  deposited  by  said 
banks  or  associations  in  this  state  one-half  of  one  per 
cent,  a  year  ;  and  on  so  much  of  said  funds  as  are 
loaned,  invested  or  deposited  otherwise,  one  per  cent. 

SECT.  130.  One-half  of  said  tax  shall  be  assessed 
on  the  average  amount  on  deposit  or  invested  or  loaned 
including  accumulations,  for  the  six  months  ending  on 
and  including  the  last  Saturday  in  April,  and  the  other 
half  on  such  average  for  the  six  months  ending  on  and 
including  the  last  Saturday  in  October.  One-half  of  the 
sum  so  paid  shall  be  appropriated  for  schools,  in  the 
manner  provided  for  tax  on  banks  of  circulation,  in 
section  one  hundred  and  seventeen  of  chapter  eleven, 
and  one-half  to  the  state,  and  such  taxes  shall  be  paid 
semi-annually  on  or  before  the  last  Saturdays  of  May 
and  November. 

SECT.  131.  All  deposits  and  accumulations  in  sav- 
ings banks  in  the  state  are  exempt  from  municipal  tax- 
ation to  the  bank  or  to  the  depositor,  but  real  estate 
owned  by  the  bank,  not  held  as  collateral  security,  may 
be  taxed  by  the  town  in  which  the  same  is  located. 

SECT.  132.  Treasurers  of  savings  banks,  on  the  first 
day  of  each  April  shall  return  to  the  assessors  of  towns, 
where  persons  reside  who  own  bank  stock  which  is 
pledged  or  transferred  to  said  bank  as  collateral  security 
for  loans,  the  names  of  persons  pledging  or  transferring 
such  stock  and  the  amount  of  the  same  ;  and  stock  so 
pledged  or  transferred  by  persons  residing  out  of  the 
state  shall  be  returned  by  such  treasurers  in  the  same 
manner  to  the  assessors  of  the  town  in  which  the  bank 
whose  stock  is  so  pledged  or  transferred  is  located. 
For  the  purposes  of  taxation,  bank  stock  so  pledged  or 
transferred  shall  be  deemed  the  property  of  the  persons 
so  pledging  or  transferring  it. 


REPORT    OF    TAX    COMMISSION.  135, 


Taxation  of  Companies  When  no  Returns  Have 

Been  Made. 
SECT.   133.     If  any  corporation,  company  or  person  state  a^ 

J  ,  to  tax  coinpa- 

f  ails  to  make  the  returns  required  by  sections  ninety-  mes  in  absence 

of  returns, 

three,   ninety-six   or   ninety-nine,    the   state   assessors  double  assess- 

shall  make  an  assessment  of  state  tax  upon  such  cor-  m 

poration,  company  or  person  on  such  valuation,  or  on 

such  gross  receipts  thereof,  as  the  case  may  be,  as  they 

think  just,  with  such  evidence  as  they  may  obtain,  and 

shall  double  the  amount  thereof,  and  such  assessment 

shall  be  final.     If  any  corporation,  company  or  person  —remedies  for 

fails  to  pay  the  taxes  required  or  imposed  by  sections  Snf offtat?" 

ninety-two,    ninety-five,  ninety-eight    or   one   hundred to 

and  twenty-nine,  the  treasurer  of  state  shall  forthwith 

commence  an  action  of  debt,  in  the  name  of  the  state, 

for  the  recovery  of  the  same  with  interest.     In  addition 

to  other  remedies  for  the  collection  of  state  taxes  upon 

any    corporation,    such    taxes   with    interest    may   be 

recovered  by  an  action  of  debt,  or  an  action  on  the 

case,  in  the  name  of  the  state. 


Taxation  of  Corporate  Franchises. 

SECT.   134.     Every  corporation,  company  or  associa-  A  tax  provided 
tiou,  now  or  hereafter  chartered  by  the  legislature  or  porate  fran^  r 
organized  under  the  general  laws  of  the  state  for  pur-  ch 
poses  of  business  or  profit  in  the  state,  or  without  the 
state  and   having  an   office  or  place  of  business  in  the 
state  for  the  direction  of  its  affairs  or  for  the  transfer 
of  its  shares,  and  having  a  capital  divided  into  shares, 
except  manufacturing,  mining  and  quarrying  corpora-  —exceptions, 
tions,   transportation,    telegraph    and    telephone    com- 
panies,   banking    corporations,    and    corporations    for 
supplying  heat,  light,  water  or  power,  operating  within 
the  state,   and  other  corporations   now  subject   to  an 
annual  state  tax,  shall  pay  to  the  state  treasurer  on  the 
first  day  of  July,  annually,  a  franchise  tax  of  one-tenth 
of  one  per  cent,  upon  its  capital  stock  at  the  par  there- 
of  ;  provided,  however,  that  the  assessed  valuation  of 
property  taxed  within  the  state   as  belonging  to  any 


136  REPORT    OF    TAX    COMMISSION. 

corporation    subject   to    said    franchise    tax,    shall    be 
-deductions,     deducted  from  the  amount  of  its  capital  stock  and  said 
franchise  tax  shall  be  assessed  upon  the  balance. 

SS to  state6  SECT>  135*  Tne  clerk  or  other  officer  having  the 
aifebS01JaanTst  custocty  of  toe  records  of  any  corporation  subject  to  the 
franchise  tax  provided  by  the  preceding  section,  shall 
by  the  first  day  of  January,  annually,  make  return  to 
state  assessors  showing  ttie  principal  place  of  business  of 
said  corporation,  its  officers  and  their  several  places  of 
residence,  its  capital  stock,  with  the  par  value  of  the 
shares,  whether  paid  in  or  not  paid  in,  and  the  assessed 
valuation  of  all  its  property  taxed  within  the  state  and 
where  taxed. 

SECT.  136.     All  officers  of  any  such  corporation  and 

Omcers  person- 

francWseetaxr  otlier  Persons  assuming  to  represent  it  in  the  state  by 
of  corporations,  having  charge  of  its  affairs  or  books  of  account,  record 
or  transfer  of  its  shares,  shall  severally  be  personally 
liable  for  the  amount  of  the  tax  imposed  upon  such  cor- 
poration under  section  one  hundred  and  thirty-four,  if 
the  same  is  not  paid  as  therein  required.  Any  such 

— corporation  * 

failing  to  make   corporation  f  ailing  to  make  such  return  or  to  pav  such 

returns  or  pay 

tax,  forfeits  cor-  tax  within  six  months  after  it  shall  have  become  due, 

porate  rights. 

forfeits  all  its  corporate  rights  and  franchises.  Pro- 
— proviso.  vided,  however,  that  such  officers,  on  application  to  the 
state  assessors,  and  satisfactory  proof  that  such  corpo- 
ration has  ceased  to  do  business  or  in  any  way  to  exer- 
cise its  corporate  rights  or  franchises,  and  after  its 
charter  and  corporate  powers  shall  have  become  for- 
feited under  the  provisions  of  this  act,  may  be  relieved 
of  their  liability  to  pay  said  tax. 


Enrolment  and  Organization   Taxes. 

Taxim  osedon      ^ECT-  137-     Every  corporation  whether  chartered  by 
corporate  char-   act  of  legislature  or  organized  under  a   general  law, 

ters  and  articles 

of  association,     shall,  before  the  enrolment  of  its  act  of  incorporation, 

or  the  recording  in  the  office  of  the  secretary  of  state  of 

its  certificate  of  organization  or  articles  of  association, 

pay  to  the  treasuier  for  the  use  of  the  state  an  enrol- 

— amount  of       ment  or  organization  tax  as  follows  :     When  the  speci- 

taxes  provided    fie(j  amount  of  capital  of  such  corporation  does  not 

exceed  five  thousand  dollars,  the  sum  of  twenty-five 


KKPOKT    OF    TAX    COMMISSION.  137 

dollar*  :  when  more  than  five  thousand  and  not  exceed- 
in  a*  ten  thousand  dollars,  the  sum  of  fifty  dollars  ;  when 
more  than  ten  thousand  and  not  exceeding  twenty  thou- 
sand dollars,  the  sum  of  one  hundred  dollars  :  when 
more  than  twenty  thousand  and  not  exceeding  forty 
thousand  dollars,  the  sum  of  one  hundred  and  fifty  dol- 
lars ;  when  more  than  forty  thousand  and  not  exceeding 
one  hundred  thousand  dollars,  the  sum  of  two  hundred 
dollars  :  and  for  each  fifty  thousand  dollars  or  major 
fraction  thereof  above  one  hundred  thousand  dollars, 
the  sum  of  one  hundred  dollars.  Any  increase  in  the  —increase  of 

J       .     .  capital  stock 

capital  stock  of  any  corporation  after  its  original  charter  subject  to  like 
or  organization,  shall  be  subject  to  tax  in  like  propor- 
tion, and  this  provision  shall  apply  to  all  corporations 
in  existence  when  this  act  takes  effect.     In  default  of  —forfeiture  for 

uou-payment  of 

payment    as    aforesaid,    within   six    mouths    after   the  taxes, 
approval  of  such  act  of  incorporation,  or  of  such  organ- 
ization, if  under  a  general  law,  by  the  proper  officer  or 
•officers,  such  act  of  incorporation  or  such  organization, 
shall  be  null  and  void.     The  taxes  provided  by  the  fore — exemption 

J  from  fees. 

going  section  are  in  lieu  of  all  fees  heretofore  provided 
by  law  upon  the  organization  of  corporations. 

SECT.  138.     The  foregoing  section  shall  not  apply  to 
societies  incorporated  under  chapter  fifty-five. 


Other    Private  or    Special    Acts  of   Legislature. 

SECT    139.     No  private  or  special  act  of  the  legisla-  A  tax  on  other 
ture  other  than  those  specified  in   section  one  hundred  ?pecLucts 
and  thirty-seven,  shall  be  enrolled  in  the  office  of  the  pl 
•secretary  of  state,  or  have  the  force  and  effect  of  law. 
until  the  party  or  parties  requesting  the  passage  of  such 
act  shall  have  paid  into  the  state  treasury  the  following  _am0untof 
sums,  to  wit ;  on  every  act  authorizing  the  division  of  tax' 
a  county,  city  or  town,  the  erection  of  a  toll   bridge, 
the  extension  of  a  wharf  into  tide  waters,  the  erection 
of  a  road  or  bridge  across  tide  waters,  the  construction 
of  a  boom  or  the  maintenance  of  a  steam  ferry,  the  sum  of 
fifty  dollars  ;  on  every  other  private  and  special  act  not 
hereinbefore    enumerated,  including  all   acts   amenda- 
tory of  and  additional  to  other  private  and  special  acts, 
ihe  sum  of  ten  dollars. 


138 


REPORT    OF    TAX    COMMISSION. 


State  tax  on 
lands  in  places 
not  incorpo- 
rated . 


Such  lands  are 
subject  to 
county  taxes. 


Taxation  of  Lands  in  Places  not  Incorporated. 

SECT.  140.  Lands  not  exempt,  and  not  liable  to  be 
assessed  in  any  town,  shall  be  taxed  by  the  legislature 
for  a  just  proportion  of  all  state  and  county  taxes  as 
herein  provided  for  ordering  the  state  and  county  taxes 
upon  property  liable  to  be  assessed  in  towns,  and  shall 
be  valued  and  inventoried  by  the  state  assessors  for 
that  purpose. 

SECT.  141 .  Such  lands  may  be  assessed  by  the  county 
commissioners  according  to  the  last  valuation  by  the 
state  assessois  fora  due  proportion  of  county  taxes. 
Lists  of  such  taxes  shall  immediately  be  certified  and 
transmitted  by  the  county  treasurer  to  the  treasurer  of 
—treasurer  of  state.  In  the  list,  each  such  township  and  tract  shall  be 

countv  to  cer- 
tify lists  of  such  sufficiently   described,    with  the    date,    and    amount   of 
taxes  to  treas-  . 

urer  of  state,      assessment  on  each.      I  he  treasurer  oi  state  shall,  in  his 
credit  for  the6     books,  credit  the  county  treasurer  for  the  amount  of 

amount  thereof.  ,  .  ,    .      ,  . 

each  such  assessment ;  and  when  paid  to  him,  shall  cer- 
tify to  the  county  treasurer  the  amount  of  tax  and  interest 
so  paid,  on  the  first  Monday  of  each  January. 

SECT.  142.  When  the  legislature  assesses  such  state 
tax,  the  treasurer  of  state  shall,  within  three  months 
thereafter,  cause  the  lists  of  such  assessments,  with  the 
lists  of  any  county  tax  so  certified  to  him,  both  for  the 
current  year,  to  be  advertised  for  three  weeks  success- 
ively in  the  state  paper,  and  in  some  newspaper,  if  any,, 
printed  in  the  county  in  which  the  land  lies,  and  shall 
cause  like  advertisement  of  the  lists  of  such  state  and 
county  taxes  for  the  following  year  to  be  made  within 
three  mouths  after  one  year  from  such  assessment.  Said 
—such  lauds  are  lands  are  held  to  the  state  for  payment  of  such  state  and 
meent  of  taxes!3"  county  taxes,  with  interest  thereon  at  the  rate  of  twenty 
per  cent.,  to  commence  upon  the  taxes  for  the  year  in 
which  such  assessment  is  made  at  the  expiration  of  one 
year  and  upon  the  taxes  for  the  following  year  upon  the 
expiration  of  two  years  from  the  date  of  such  assess- 
ment. 
Lauds  shall  be  SECT.  14o.  Owners  of  the  lands  so  assessed  and 

forfeited  in  one         -,         , .       n  1^.1  xi 

year,  if  taxes  are  advertised,  may  redeem  them,  by  paying  to  the  treasurer 
of  state  the  taxes  with  interest  thereon,  within  one  year 
from  the  time  when  such  interest  commences.  Each 


Lists  of  assess 
ments  shall  be 
certified  and 
advertised 
annually. 


REPORT    OF    TAX    COMMISSION.  139 

owner  may  pay  for  his  interest  in  any  tract,  whether  in 
common  or  not,  and  shall  receive  a  certificate  from  the 
treasurer  of  state,  discharging  the  tax  upon  the  number 
of  acres,  or  interest,  upon  which  such  payment  is  made. 
Kach  part  or  interest  of  every  such  township  or  tract, 
upon  which  the  state  or  county  taxes  so  advertised  are 
not  paid  with  iLterest  within  the  time  limited  in  this 
section  for  such  redemption,  shall  be  wholly  forfeited 
to  the  state,  and  vest  therein  free  of  any  claims  by  any 
former  owner. 

SECT.   144.     Lands  thus    forfeited  shall,  annually  in  Treasurer  of 
September,  be  sold  by  the  treasurer  of  state  at  public  forfeited  lands 
auction  to  the  highest  bidder ;  but  never  at  a  price  less  September11 
than  the  full  amount  due  thereon  for  such  unpaid  state  ar 
and    county  taxes,   interest,   and  tost  of    advertising. 
Notice  of  the  sale  shall  be  given  by  publishing  a  list  of  _not1ce  shali  be 
the  lauds  to  be  sold  with  the  amount  of  such  unpaid  ^^my 
taxes,  interest,  and  costs  on  each  parcel,  and  the  time  i)aPer- 
and  place  of  sale,  in  the  state  paper,  and  in  some  news- 
paper, if  any,  printed  in  the  county  in  which  the  lands 
lie,  three  weeks  successively,  within  three  months  before 
the  time  of  sale. 

SECT    145.     If  anv  such  tract  is  sold  for  more  than 

*  Surplus  shall  be 

the  amount  due,  the  surplus  shall  be  held  by  the  state  paid  to  owners, 
to  be  paid  to  the  owner,  whose  right  has  been  so  for- 
feited, upon  proof  of  ownership  produced  to  the  gov- 
ernor and  council. 

SECT.   146.     Any  owner  may  redeem  his  interest  in  Owner  may  pay 

.  „  tax  before  sale, 

such  lauds,  by  paying  to  the  treasurer  of  state  his  part  or  he  may 
of  the  sums  due  at  any  time  before  sale  ;  or  after  sale,  the  purchaser 

,  ., ,  .  within  one  year. 

by  paying  or  tendering  to  the  purchaser,  within  a  year, 
his  proportion  of  what  the  purchaser  paid  therefor  at 
the  sale,  with  interest  at  the  rate  of  twenty  per  cent,  a 
year  from  the  time  of  sale,  and  one  dollar  for  a  release  ; 
and  the  purchaser,  on  reasonable  demand,  shall  execute 
such  release  ;  and  if  he  refuses  or  neglects,  a  bill  in 
equity  may  be  maintained  to  compel  him,  with  costs 
and  any  damages  occasioned  by  such  refusal  or  neglect. 
Or  such  owner  may  redeem  his  interest  by  paying  as 
aforesaid  to  the  treasurer  of  state,  who,  on  payment  of 
fifty  cents,  shall  give  a  certificate  thereof  ;  which  certi- 


140 


REPORT    OF    TAX    COMMISSION. 


<Jopy  of  record 
of  treasurer's 
doings  is  made 
evidence. 


— costs 
apportioned. 


—count}'  taxes 
shall  be  paid 
over  to  county 
treasurer. 


Owner  may  pay 
taxes  to  county 
treasurer. 


Assessment  on 
lands  for  open- 
ing roads  in 
unincorporated 
places. 


— lien  created. 


— when  assess- 
ment appears 
oppressive,  an 
equitable 
amount  may  be 
assessed  on 
county. 


—appeal  to  S. 
J.  court. 


ficate,  recorded  in  the  registry  of  deeds  in  the  county 
where  the  lauds  lie,  shall  be  a  release  of  such  interest, 
and  the  title  thereto  shall  revert  and  be  held  as  if  no 
such  sale  had  been  made.  The  governor  and  council 
may  draw  their  warrant  on  the  treasurer  for  any  money 
so  paid  to  him,  in  favor  of  the  purchaser  for  whom  it 
was  paid,  or  his  legal  representatives. 

SECT.  147.  The  printer's  bills  for  advertising  such 
lands  shall  be  divided  in  each  case  by  the  number  of 
townships  and  tracts  advertised,  and  each  shall  be 
charged  with  its  proportion  thereof.  All  amounts  of 
county  taxes  and  interest  so  received  by  the  treasurer 
of  state,  shall  be  credited  by  him  to  the  counties  to 
which  they  belong,  and  paid  to  the  treasurers  thereof. 
The  treasurer  of  state  shall  record  his  doings  in  every 
such  sale  ;  and  a  certified  copy  of  such  record  shall  be 
prima  facie  evidence,  in  any  court,  of  the  facts  therein 
set  forth.  He  shall  give  a  deed  to  the  purchaser  con- 
veying all  the  interest  of  the  state  in  the  laud  sold. 

SECT.  148.  Any  owner  of  lands  so  assessed  by  the 
county  commissioners  for  county  taxes,  may  redeem 
them  by  paying  to  the  county  treasurer  the  amount  due 
thereon  for  such  taxes,  interest  and  charges,  and 
depositing  with  the  treasurer  of  state  the  county  treas- 
urer's certificate  of  such  payment,  at  any  time  before 
the  sale. 

SECT.  149.  When  a  road  is  laid  over  lands  under 
section  forty-one,  of  chapter  eighteen,  the  county  com- 
missioners shall  at  their  first  regular  session  thereafter 
assess  thereon  and  on  adjoining  townships  benefited 
thereby,  such  an  amount  as  they  judge  necessary  for 
making,  opening  and  paj'ing  expenses  attending  it ;  and 
such  assessment  shall  create  a  lien  thereon  for  the  pay- 
ment thereof  ;  and  they  may  make  as  many  divisions 
as  are  equitable,  conforming  as  nearly  as  is  convenient 
to  known  divisions  and  separate  ownerships,  and  may 
assess  upon  eacli  a  sum  proportional  to  the  value  thereof 
and  the  benefits  likely  to  result  to  the  same  by  the  estab- 
lishment of  the  road  ;  when  such  assessment  would  be 
unreasonably  burdensome  to  such  owners,  they  shall 
assess  an  equitable  sum  on  the  county  and  the  balance 
only  on  such  land.  Any  person  aggrieved  by  an  assess- 


REPORT    OF    TAX    COMMISSION.  141 

meut  may  appeal  to  the  supreme  judicial  court  at  the  —proceedings. 

term  thereof  first  held  after  such  assessment  ;  and  the 

presiding  judge  at  that  term  shall,  on  hearing  the  case, 

determine  what  part  of  said  assessment  shall  be  paid  by 

the  owners  of  the  tract  or  township,  and  what  part,  if 

ary,  by  the  county,  and  there  shall  be  no  appeal  from 

such  decision.     They  shall,  at  the  same  time,  fix  the 

time  for  making  and  opening  such  road,  not  exceeding 

two  years  from  the  date  of  the  assessment,  and  appoint 

an   agent  or  agents,   not  memb  rs  of  their  board,  to  roads- 

superintend  the  same,  who  shall  give  bond  to  the  treas- 

urer of  the  county,  with  sureties  approved  by  them,  to 

expend  the  money  faithfully,  and  to  render  account 

thereof  on  demand  ;  and  they  shall  publish  a  list  of  the 

townships  and  tracts  of  laud  so  assessed,  with  the  sum 

assessed  on  each,  and  the  time  in  which  the  road  is  to 

be  made  and  opened,  in  the  state  paper,  and  in  some  paper, 

if  any,  printed  in  the  county  where  the  lands  lie,  three 

weeks  successively,  the  last  publication  to  be  within  three 

mouths  from  the  date  of  the  assessment. 

SECT.  150.  If  the  owners  make  and  open  such  road 
to  the  acceptance  of  the  commissioners,  after  an  actual 
examination  by  one  or  more  of  their  board,  within  said  bl 
time,  the  assessment  shall  thereby  be  discharged  ;  other- 
wise it  shall  be  enforced  as  hereinafter  provided,  and 
the  agents  shall  proceed  immediately  to  make  and 
open  it. 

SECT.   151.     Said  county  commissioners,  in  Septem-  Co 
ber,  annually,  by  one  or  more  of  their  board,  shall  make 
an  inspection  of  all  county  roads  and  other  roads  origi-  ™ads  in  u"iu- 
nally  located  as  town  roads  in  the  unincorporated  town-  places. 
ships  and  tracts  of  land   in  their  counties,  and   shall 
thereupon  make  an  estimate  of  the  amount  needed  to 
put  them  in  repair,  so  as  to  be  safe  and  convenient  for 

...  .  .,  —to  make  esti- 

public  travel,  and  assess  such  amount  thereon  ;  and  they  mate  of  repairs. 
shall  make  as  many  divisions  as  are  equitable,  conform- 
ing as  nearly  as  is  convenient  to  known  divisions  and  _diVH0n«  and 
separate  ownerships,  and  shall  assess  upon  each  a  sum  asse88ments. 
proportionate  to  the  value  thereof  ;  and  cause  so  much  _tocaus, 
thereof  as  they  deem  necessary  for  the  purpose  aforesaid,  expenditures 
to  be  expended  on  said  roads  within  one  year  thereafter, 
which  assessment  shall  create  a  lien  thereon  for  the  pay- 


ommg8oilertl 


142 


REPORT    OF    TAX    COMMISSION. 


—when  burden- 
some to  owners, 
equitable  sum  to 
be  assessed  on 
county. 

— an  agent  to  be 
appointed  to 
superintend  the 
repair  of  roads. 


— lists  of  town- 
ships and  lands 
assessed,  to  be 
published. 


Land  owners 
may  discharge 
their  assessment 
by  repairing 
road. 


Proceedings  if 
owner  fails  to 
discharge  his 
assessment. 


ment  thereof  ;  when  such  assessment  would  be  unreason- 
ably burdensome  to  such  owners,  they  shall  assess  an 
equitable  sum  on  the  county  and  the  balance  only  on  such 
lands.  They  shall  make  such  assessment  by  the  first  day 
of  each  January,  and  at  the  same  time  appoint  an  agent 
or  agents,  not  members  of  their  board,  to  superintend 
the  expenditure  thereof,  who  shall  give  bonds  as  pro- 
vided in  section  one  hundred  and  forty-nine  ;  and  they 
shall  publish  a  list  of  the  townships  and  tracts  of  laud 
so  assessed,  with  the  sums  so  assessed  on  each,  and  the 
roads  on  which  it  is  to  be  expended,  in  the  state  paper, 
and  in  some  paper,  if  any,  printed  in  the  county  where 
the  lands  lie,  three  weeks  successively,  the  last  publi- 
cation to  be  within  three  months  from  the  date  of  the 
assessment. 

SECT.  152.  If  by  the  fifteenth  of  June  following, 
the  owners  of  such  lauds  repair  such  roads  to  the 
acceptance  of  the  commissioners,  after  an  actual  exam- 
ination by  one  or  more  of  their  board,  the  assessment 
shall  be  thereby  discharged ;  otherwise  it  shall  be 
enforced  as  hereinafter  provided,  and  the  agents  shall 
proceed  immediately  to  repair  such  roads. 

SECT.  153.  If  any  owner  fails  to  pay  the  sum  so 
assessed  on  his  land,  for  the  expenses  of  making  and 
opening  such  new  roads,  within  two  mouths  from  the 
time  fixed  therefor  as  provided  in  section  one  hundred 
and  fifty,  or  fails  within  two  months  after  the  fifteenth 
day  of  each  June,  to  pay  his  assessment  for  repairing 
roads,  as  provided  in  the  two  preceding  sections,  the 
county  treasurer  shall  proceed  to  sell  the  lands  so 
assessed,  by  advertising  the  lists  of  unpaid  taxes,  with 
the  date  of  assessment,  and  the  time  and  place  of  sale, 
in  the  state  paper,  and  in  some  paper,  if  any,  printed 
in  the  county  where  the  lands  lie,  three  weeks  success- 
ively, the  last  publication  to  be  at  least  thirty  days 
before  the  time  of  sale.  No  bid  shall  be  received  at 
such  sale  for  less  than  the  amount  due  for  the  tax, 
costs  and  interest  at  twenty  per  cent,  a  year  from  the 
time  prescribed  for  the  payment  of  said  tax  ;  and  the 
treasurer  shall  sell  so  much  of  such  laud  as  is  necessary 
to  pay  the  unpaid  tax,  costs  and  interest  as  aforesaid, 


REPORT    OF    TAX    COMMISSION.  143 

and  give  a  deed  thereof  to  the  purchaser,  if  any  ;  and 
if  no  one  becomes  a  purchaser  at  such  sale,  it  shall  be 
forfeited  to  the  county  ;  and  such  owner  or  part  owner 
or  tenant  in  common  may  redeem  his  interest  therein  at 
any  time  within  two  years  from  the  sale  or  forfeiture, 
by  paying  to  the  purchaser  or  the  county  the  sum  for 
which  it  was  sold  or  forfeited,  with  interest  at  twenty 
per  cent,  a  year,  and  any  sums  subsequently  paid  for 
state  and  county  taxes  thereon.  Any  owner  of  lands  -owners 

....  *    iv      entitled  to  over- 

so  sold,  shall  receive  his  share  in  any  overplus  or  the  plus, 
proceeds  of  such  sale,  on  exhibiting  to  the  treasurer 
satisfactory  evidence  of  his  title.  In  addition  to  the  -additional 
method  provided  in  this  section  for  the  collection  of  " 
highway  taxes  assessed  for  the  purposes  named  therein, 
the  county  commissioners  of  any  county,  may,  in  writing 
at  any  time  subsequent  to  that  when  the  lauds  so 
assessed  might  be  sold  for  non-payment  of  the  taxes 
assessed  therein,  direct  the  treasurer  of  such  county  to 
commence  an  action  of  debt  in  the  name  of  the  inhabi- 
tants of  said  county,  against  the  party  liable  to  pay 
such  taxes.  But  no  such  defendant  shall  be  liable  for 
any  costs  of  suit  in  such  action  unless  it  appears  by  the 
declaration  and  proof,  that  payment  of  said  tax  had 
been  duly  demanded  by  said  treasurer  before  the  suit 
was  commenced. 

SECT.   154.     In  any  trial  at  law  or  in  equity  involving  Prima  facie 
the  validity  of  any  sale  or  forfeiture  of  such  lands,  as  purchase  at 

.,,..,  ,.  ..  .,       ,     „     ,  .          such  sale. 

provided   m  the   preceding  section,  it  shall   be   prima 

facie  proof  of  title  for  the  party  claiming  under  it,  to 

produce  in  evidence  the  county  treasurer's  deed,  duly 

executed  and  recorded,  the  assessments  signed  by  the 

county  commissioners  and  certified  by  them  or  their 

clerk  to  the  county  treasurer,  and  to  prove  that  the 

county  treasurer  complied  with  the  requirements  of  law 

in  advertising  and  selling.     But  the  purchaser  or  the  —lien  on  land 

county  shall  have  a  lieu  on  the  land  sold  or  forfeited  costs  and  inter- 

Pgt 

for  the  taxes,  costs  and  interest,  and  any  subsequent 
taxes  legally  assessed  thereon  and  paid  by  either,  or 
those  claiming  under  them ;  and  such  sums  shall  be 
paid  or  tendered,  before  any  person  shall  commence, 
maintain  or  defend  any  suit  at  law  or  in  equity,  involv- 


144  REPORT    OF    TAX    COMMISSION. 

ing  the  title  to  such  lands  under  such  sale  or  forfeiture^ 
notwithstanding  any  irregularities  or  omissions  in  suck 
sale  or  forfeiture. 
County  com-  SECT.   155.     County  commissioners,  in  case  of  sudden 

missioners  may 

repair  county      iniurv  to  county  roads  and  bridges  m  unincorporated 

roads  and 

bridges  in          townships   and  tracts  of  land  in  their  counties,    may 

unincorporated  . 

places  in  case  of  cause  them  to  be  repaired  forthwith,  or  as  soon  as  they 

sudden  injury.  . 

deem  necessary,  and  may  appoint  an  agent  or  agents- 

not  members  of  their  own  board,  to  superintend  the 

a  ent  to   ive    expenditure  therefor,  who  shall  give  bond  as  required 

'bowl.  jn  section  one  hundred  and  forty-nine,  if  required,  the 

whole  expense  whereof  shall  be  added  to  their  next 

assessment   on  said  lands  for  repairs,   authorized  by 

section  one  hundred  and  fifty,  which  assessment  shall 

—assessment 

for  repairs,  how  create  a  lien  upon  said  lands  for  the  whole  amount- 
thereof  as  effectually  as  is  now  provided  in  relation  to 
repairs  on  such  county  roads.  That  portion  of  said 
assessment  which  is  for  repairs  of  sudden  injuries  as 

—assessments     aforesaid,   shall  be    set  down,    in   the  assessment,   in 

to  be  itemized. 

distinct  items,  m  a  separate  column,  and  shall  not  be 
discharged,  under  section  one  hundred  and  fifty-two,, 
but  shall  be  enforced  as  is  provided  in  section  one  hun- 
dred and  fifty-three. 

Purchasers  ac-  SECT.  156.  Purchasers  of  land  sold  for  non-payment 
of  state  and  county  taxes,  and  assessments  for  opening,, 
making  and  repairing  roads,  have  no  claim  against  the 
state  or  county  for  any  defect  in  the  title  under  such 
sale,  notwithstanding  any  irregularities  in  the  proceed- 
ings, or  failure  to  comply  with  the  law  under  which  the 
sales  were  made.  Deeds  given  pursuant  to  sales  made 
for  non-payment  of  state  and  county  taxes,  vest  in  the 
grantee  the  title  of  the  state,  or  of  the  county,  to  the 
lands  sold,  subject  to  the  conditions  of  sale,  and  uo» 
more. 

Part  owner  may  SECT.  157.  Any  person  having  a  legal  interest  in  a 
share?11"8  tract  so  advertised,  sold  or  forfeited,  may  redeem  his. 
interest  by  paying  within  the  times  prescribed,  the 
amount  so  required  to  discharge  the  claim  thereon.. 
The  rate  of  interest  upon  unpaid  state  and  county  taxes,, 
and  taxes  assessed  by  county  commissioners  for  opening, 
making  and  repairing  roads,  shall  be  twenty  per  cent  » 


REPORT    OF   TAX    COMMISSION.  145 

commencing  at  the  expiration  of  one  year  from  the  date 
of  the  assessments,  except  when  otherwise  provided. 


Assessment    of   Taxes  in   Incorporated    Places. 

SECT.  158.     When  a  state  tax  is  imposed  and  required  Treasurer  of 

state  to  send 

to  l»e  assessed  by  the  proper  officers  of  towns,  the  treas-  warrants  to 

.  sheriffs  for 

urer  of  state  shall  send  such  warrants,  as  he  is,  from  assessment  on 

towns  of  state 

time  to  time,  ordered  to  issue  for  the  assessment  thereof,  tax. 
to  the  sheriffs,  who  shall  transmit  them  to  the  assessors 
of  the  towns  in  their  counties,  according  to  the  direc- 
tions thereof. 

SECT.  159.     In  order  to  assess  a  county  tax,  county  county  com- 

.  .  „  ,       missioners  to 

commissioners,  at  their  regular  session  next  before  the  make  annual 

first  day  of  each  January  in  which  the  legislature  meets,  county  taxes. 

shall  prepare  estimates  of  the  sums  necessary  to  defray 

the  expenses  which  have  accrued  or  may  probably  accrue 

for  one  year  from  said  day,  including  the  building  and 

repairing  of  jails,  court  houses,  and  appurtenances,  with 

the  debts  owed  by  their  counties,  and  like  estimates  for 

the  succeeding  year,  and  the  county  tax  for  both  said 

years  shall  be  grant*  d  by  the  legislature  separately  at 

the  same  session. 

SECT.  160.     Said  estimates  shall  be  recorded  by  their  Estimates  to  be 
clerk  in  a  book  ;  and  a  copy  thereof  shall  be  signed  by  [ran^mmed  to 
the  chairman  of  the  county  commissioners,  and  attested 
by  their  clerk,  who  shall  transmit  it  to  the  office  of  the 
secretary  of  state,  on  or  before  the  first  day  of  each 
January  in  which  the  legislature  meets,  to  be  by  him 
laid  before  the  legislature. 

SECT.  161.      When  a  county  tax  is  authorized,  the  County  com- 
county  commissioners  shall  in  March  in  the  year  for  "p 
which  such  tax  is  granted,  apportion  it  upon  the  towns  S 
and  other  places  according  to  the  last  state  valuation, 
and  issue  their  warrant  to  the  assessors,  requiring  them 
forthwith  to  assess  the  sum  apportioned  to  their  town 
or  place,  and  to  commit  their  assessment  to  the  constable 
or  collector  for  collection. 

SECT.   162.      No  assessment  of  a  tax  by  a  town  or  x0t  legal, 
parish  is  legal,  unless  the  sum  assessed  is  raised  by  vote 
of  the  voters,  at  a  meeting  legally  called  and  notified. 
10 


146 


REPORT    OF    TAX    COMMISSION. 


Abatements, 
how  applied  lor 
and  when. 


Appeal  to 

county 

commissioners. 


—proceedings 
thereon. 


Assessments, 
how  made. 


— lists,  to  whom 
committed. 


State  and 
county  taxes 
to  be  added. 


Overlay  not  to 
exceed  five  per 
cent. 


Applications  for  Abatements. 

SECT.  163.  Any  person,  corporation  or  firm,  having 
complied  with  all  the  requirements  of  this  act  relating 
to  the  inventory  and  return  of  property  for  taxation, 
may,  within  thirty  days  after  notice  of  the  amount  of 
his  or  their  tax,  make  written  application  to  the  assess- 
ors for  any  abatement  claimed,  stating  the  grounds  of 
such  claim.  The  assessors  shall  keep  in  suitable  book 
form  a  record  of  such  abatements,  with  the  reasons  for 
each,  and  report  the  same  to  the  town  at  its  next  annual 
meeting,  and  to  the  mayor  and  aldermen  of  cities,  by 
the  first  Monday  in  the  following  March. 

SECT.  164.  If  they  refuse  to  make  the  abatement 
asked  for,  the  applicant  may  apply  to  the  county  com- 
missioners at  their  next  meeting,  and  if  they  think  that 
he  is  overrated,  he  shall  be  relieved  by  them,  and  be 
re-imbursed  out  of  the  town  treasury  the  amount  of 
their  abatement,  with  incidental  charges.  The  com- 
missioners may  require  the  assessors  or  town  clerk  to 
produce  the  valuation,  by  which  the  assessment  was 
made,  or  a  copy  of  it.  If  the  applicant  fails,  the  com- 
missioners shall  allow  the  costs  to  the  town,  taxed  as 
in  a  suit  in  the  supreme  judicial  court,  and  issue  their 
warrant  of  distress  for  collection  thereof  against  him. 

SECT.  165.  The  assessors  shall  assess  upon  the  polls 
and  estates  in  their  town  all  town  taxes  and  their  due 
proportion  of  any  state  or  county  tax,  according  to  the 
rules  in  the  latest  act  for  raising  a  state  tax,  and  in  this 
chapter  ;  make  perfect  lists  thereof  under  their  hands  ; 
and  commit  the  same  to  the  constable  or  collector  of 
their  town,  if  any,  otherwise  to  the  sheriff  of  the  county 
or  his  deputy,  with  a  warrant  under  their  hands,  in  the 
form  hereinafter  prescribed. 

SECT.  166.  They  may  add  their  proportion  of  the 
state  and  county  tax  to  any  of  their  other  taxes,  and 
make  one  warrant  and  their  certificates  accordingly. 

SECT.  167.  They  may  assess  on  the  estates  such 
sum  above  the  sum  committed  to  them  to  assess,  not 
exceeding  five  per  cent,  thereof,  as  a  fractional  division 
renders  convenient,  and  certify  that  fact  to  their  town 
treasurer. 


REPORT    OF    TAX    COMMISSION.  147 

SECT.   1(38.     They  shall  make  a  record  of  their  assess-  Record  of 
inent  and  of  the  invoice  and  valuation  from  which   it  UJSw^be*1 
was  made  ;  and  before  the  taxes  are  committed  to  the  ^TsS office, 
officer  for  collection,  they  shall  deposit  it,  or  a  copy  of 
it,    in  the   assessors'  office,  if  any,  otherwise  with  the 
town  clerk,  there  to  remain  :  and  any  place,  where  tin- 
assessors   usually  meet  to  transact  business   and  keep 
their  papers  or  books,  shall  be  considered  their  office. 

SECT.  1 69.  When  they  have  assessed  any  county  tax  certificate  to  be 
and  committed  it  to  the  officer  for  collects -u,  they  shall 
return  to  the  county  treasurer  a  certificate  thereof  with 
the  name  of  such  officer.  When  they  have  so  assessed 
and  committed  a  state  tax,  they  shall  return  a  like  cer-  _alMito 
tincate  to  the  treasurer  of  state  ;  and  if  this  is  not  done, 
and  any  part  of  such  tax  remains  unpaid  for  sixty  days 
after  the  time  fixed  for  its  payment,  the  treasurer  of 
state  shall  issue  his  warrant  to  the  sheriff  or  his  deputy 
to  collect  the  sum  unpaid  of  the  inhabitants  of  the  town 
or  place. 

SECT.   170.     If  any  town  having  less  than  two  thous-  selectmen  to  be 
and  inhabitants  by  the  last  preceding  census  does  not  JSSSneventB 
choose  assessors,  or  if  so  many  of  them  refuse  to  accept, 
that  there  are  not  such  a  number  as  such  town  voted  to 
have,  the  selectmen  shall  be  the  assessors,  and  each  of 
them  shall  be  sworn  as  an  assessor ;  and  each  selectman 
and  assessor  shall  be  paid  for  his  services  two  dollars  _per  diem,  $2. 
for  every  day  necessarily  employed  in  the  service  of  the 
town 

SECT.  171.  Any  town  having  less  than  two  thousand 
inhabitants  as  aforesaid,  neglecting  to  choose  selectmen 
or  assessors,  and  any  other  town  neglecting  to  choose 

assessors,  forfeits  to  the  state  not  exceeding  three  him-  Penalty-  for  neg- 
lect to  choose, 
dred,  nor  less  than  one  hundred  dollars,  as  the  supreme 

judicial  court  orders,  on  proper  complaint  by  any  inhabi- 
tant or  party  interested. 

SECT.  172.     In  such  case,  and  when  the  selectmen  or  When  no 

assessors. 

assessors  chosen  by  a  town  do  not  accept  the  trust,  the  county  com- 
county  commissioners  may  appoint  three  or  more  suit-  ippiw!™ 
able  persons  in  the  county,  to  be  assessors  of  taxes, 
and  such  assessors,  being  duly  sworn,  shall  assess  upon 
the  polls  and  estates  in  the  town  their  due  'proportion 


148 


REPORT    OF    TAX    COMMISSION. 


— proceedings 
thereon. 


Such  assessors 
to  obey  war- 
rants. 


Penalty  tor  neg 
lect  to  make 
assessments  of 
state  tax. 


Penalty  for  neg- 
lect to  assess 
county  tax. 


Assessors  may 
be  arrested. 


— other  assess- 
ors may  be 
appointed. 


Towns  neglect- 
ing ft.r  five 
mouths  to 
assess,  treas- 
urer to  issue 
warrant  to 
sheriff  to  col- 
lect. 


of  state  and  county  taxes  and  said  penalty,  and  not 
exceeding  two  dollars  a  day  each,  for  their  own  reason- 
able charges  for  time  and  expense  in  said  service  ;  and 
shall  issue  a  warrant  under  their  hands  for  collecting 
the  same,  and  transmit  a  certificate  thereof  to  the  treas- 
urer of  state,  with  the  name  of  the  person  to  whom  it 
is  committed  ;  and  the  assessors  shall  be  paid  their 
charges  as  allowed  by  said  commissions  out  of  the  state 
treasury. 

SECT.  173.  All  assessors,  chosen  or  appointed  as 
above  provided,  shall  observe  all  warrants,  received  by 
them  while  in  office,  from  the  treasurer  of  state  or  the 
county  commissioners  of  their  county. 

SECT.  174.  If  assessors  of  a  town  refuse  or  neglect 
to  assess  any  state  tax  apportioned  on  it,  and  required 
by  the  state  treasurer's  warrant  to  be  assessed  by  them, 
they  forfeit  to  the  state  the  full  sum  mentioned  in  suck 
warrant ;  and  such  treasurer  shall  issue  his  warrant  to 
the  sheriff  of  the  county  to  levy  said  sum  by  distress 
and  sale  of  their  real  and  personal  estate. 

SECT.  175.  If  such  assessors  neglect  to  assess  the 
county  tax  required  in  the  warrant  of  the  county  com- 
missioners to  be  assessed  by  them,  they  forfeit  that  sum 
to  the  county  ;  and  it  shall  be  levied  by  sale  of  their 
real  and  personal  estate,  by  virtue  of  a  warrant  issued 
by  the  county  treasurer  to  the  sheriff  of  the  county  for 
that  purpose. 

SECT.  176.  If  the  sheriff  cannot  find  property  of 
said  assessors  to  satisfy  the  sum  due  on  either  of  said 
warrants,  he  may  arrest  and  imprison  them,  until  they 
pay  the  same  ;  and  the  county  commissioners  shall  forth- 
with appoint  other  proper  persons  to  be  assessors  of 
such  state  and  county  taxes,  who  shall  be  sworn,  and 
perform  the  same  duties,  and  be  liable  to  the  same  pen- 
alties, as  the  former  assessors. 

SECT.  177.  If  the  inhabitants  of  a  town  of  which  a 
state  tax  is  required,  neglect  for  five  mouths,  after 
having  received  th-  state  treasurer's  warrant  for  assess- 
ing it,  to  choose  assessors  to  assess  it,  and  cause  the 
assessment  thereof  to  be  certified  to  such  treasurer  for 
the  time  being,  he  shall  issue  his  warrant,  under  his- 


REPORT    OF    TAX    COMMISSION.  149 

hand,  to  the  sheriff  of  the  same  county,  who  shall  pro- 
ceed to  levy  such  sums  on  the  real  and  personal  property 
of  any  inhabitants  of  such  town,  observing  the  regula- 
tions provided  for  satisfying  warrants  against  deficient 
collectors,  as  hereinafter  prescribed.  But  if  the  assess- 
ors thereof,  within  sixty  days  from  the  receipt  of  a  copy 
of  such  warrant  from  the  officer,  deliver  to  him  a  certifi- 
cate, according  to  law,  of  the  assessment  of  the  taxes 
required  by  the  warrant,  and  pay  him  his  legal  fees,  he 
shall  forthwith  transmit  the  certificate  to  the  state  treas- 
urer, and  return  the  warrant  unsatisfied. 

SECT.   178      If  the  inhabitants  of  a  town  of  which  a  For  like  neglect 
county  tax  is  required,  neglect  to  choose  and  keep  in  Urer  to  issue" 
office   assessors  to  assess  it,  as  the  law  requires,  the  w 
county  treasurer,  for  the  time  being,  after  five  months 
from  the  time  when  they  received  the  county  commis- 
sioners' warrant  for  assessing  it,  shall  issue  his  warrant 
to  the  sheriff,  requiring  him  to  levy  and  collect  the  sum 
mentioned  therein  ;  and  he  shall  execute  it,  observing 
the  regulations  and  subject  to  the  condition  provided  in 
the  preceding  section. 

SECT.   179.     If  the  voters  of  a  town,  of  which  a  state  Warrants  to  be 

,        ,  ,  ,       ,   issued  to  collect 

or  county  tax  is  required,  choose  assessors  who  neglect  of  inhabitants, 

,    ,         , ,  ,     .  if  not  collected 

to  assess  the  tax  required  by  the  warrant  issued  to  Of  assessors, 
them,  or  to  re-assess  the  tax  on  the  failure  of  a  collector, 
and  to  certify  it  as  the  law  directs ;  and  if  the  estates 
of  such  assessors  are  insufficient  to  pay  such  taxes  as 
already  provided,  the  treasurer  of  state,  or  of  the  county 
as  the  case  may  be,  for  the  time  being,  shall  issue  his 
warrant  to  the  sheriff  of  such  county,  requiring  him  to 
levy,  by  distress  and  sale,  such  deficiency  on  the  real 
and  personal  estates  of  such  inhabitants  ;  and  the  sheriff 
or  his  deputy  shall  execute  such  warrants  observing  all 
the  provisions  mentioned  in  section  one  hundred  and 
seventy- seven 

SECT.   180.     Any   assessor,   chosen    and    notified  toPenaltvou 
take  the  oath   of    office,   unreasonably  refusing  to  be  refusing"^ 
sworn,  forfeits  to  the  town  fifteen  dollars,  to  be  recov-  sworn- 
ered  by  their  treasurer  in  an  action  of  debt;  and  the  _vacancy  how. 
selectmen  shall  forthwith  call  a  town  meeting  to  fill  the  filletl- 
vacancy. 


150 


REPORT    OF    TAX    COMMISSION. 


Plantations 
taxed, invested 
with  power  ol 
towns  for  such 
purpose. 


And  subject  to 
same  penalties. 


Officers  to  be 
sworn. 


When  a  tax  is 
laid  on  a  place 
not  incorpo- 
rated, county 
commissioners 
may  cause  it  to 
be  organized  as 
a  plantation. 


Assessors  to 
make  list  of 
pol's,  &c. 


Laws  appli- 
cable. 


Neglect  to  be 
sworn. 


Assessment  of  Taxes  in  Plantations. 

SECT.  181.  All  plantations  required  to  pay  any  part 
of  the  public  taxes,  are  vested  with  the  same  power  as 
towns,  so  far  as  relates  to  the  choice  of  clerk,  assessors 
and  collectors  of  taxes  ;  and  any  person,  chosen  assessor 
therein,  and  refusing  to  accept,  or  to  take  the  legal 
oath,  after  due  notice,  is  liable  to  the  same  penalty,  to 
be  recovered  in  the  manner  mentioned  in  the  preceding 
section  ;  and  the  other  assessors  shall  forthwith  call  a 
plantation  meeting  to  fill  the  vacancy. 

SECT.  182.  If  any  such  plantation  neglects  to  choose 
a  clerk,  assessors,  and  collector  of  taxes,  or  if  the 
assessors  chosen  neglect  their  duty,  it  shall  be  subject 
to  the  same  penalties  and  proceeded  against  in  the  same 
manner  as  towns  deficient  in  the  same  respect 

SECT.  183.  The  clerk,  assessors,  and  collectors,  shall 
be  sworn  as  similar  officers  chosen  by  a  town,  and  shall 
receive  the  same  compensation,  unless  otherwise  agreed. 

SECT.  184.  When  a  state  or  county  tax  is  laid  on  a 
place  not  incorporated  or  organized,  the  treasurer  of 
state  or  county  commissioners  of  that  county  may  cause 
the  same  to  be  organized  as  provided  in  chapter  three, 
sections  seventy-one  and  seventy-two,  for  the  organiza- 
tion of  plantations  ascertained  to  contain  two  hundred 
and  fifty  inhabitants.  If  the  inhabitant  to  whom  the 
warrant  is  directed,  fails  to  perform  the  duties  required 
of  him,  he  forfeits  the  sums  due  for  state  and  county 
taxes,  to  be  recovered  by  the  treasurer  to  whom  the  tax 
is  payable. 

SECT.  185.  The  assessors  shall  thereupon  take  a  list 
of  the  ratable  polls,  and  a  valuation  of  the  estates  of 
the  inhabitants  of  the  plantation,  and  proceed  to  assess 
taxes  and  cause  the  same  to  be  collected  as  required  by 
law. 

SECT.  186.  All  laws  applicable  to  organized  planta- 
tions apply  to  plantations  organized  under  section  one 
hundred  and  eighty-four. 

SECT.  187.  Plantation  officers  neglecting  to  be  sworn 
when  notified,  are  liable  to  the  same  penalties  as  town 
officers  so  neglecting,  to  be  recovered  in  the  same  man. 


REPORT    OF    TAX    COMMISSION.  151 

ner.  The  word  towns  in  this  chapter  including  cities 
and  plantations. 

Collection  of  Taxes  in  Incorporated  Places. 

SECT.  188.     Towns,  at  their  annual  meetings,  may  Towns  may  fix 
determine  when  the  lists  named  in  section  one  hundred  ^tf  anS're" 
and  sixty-five  shall  be  committed,  and  when  their  taxes  2g£;'interert 
shall  be  payable,  and  that  interest  shall  be  collected 
thereafter. 

SECT.   189.     The  rate  of  such  interest,  not  exceeding  Not  to  exceed 

one  per  cent,  a 

one  per  cent,  a  month,  shall  be  specified  in  the  vote,  month, 
and  shall  be  added  to,  and  become  part  of  the  taxes. 

SECT.  190.     The  warrant  to  be  issued  by  selectmen  Form  of  war- 

,.  n     •*•  •          *  u    n     i  rant  for  collec- 

or  assessors   for  collection  of  state  taxes  shall  be  in  tkm  of  state- 
substance,  as  follows  : 

— ,  ss.     A.  B.,  constable  or  collector  of  the  town 
of ,  within  the  county  of :  GREETING  : 

In  the  name  of  the  State  of  Maine,  you  are  hereby 
required  to  levy  and  collect  of  each  of  the  several  per- 
sons named  in  the  list  herewith  committed  unto  you,  his 
respective  proportion  therein  set  down,  of  the  sum  total 
of  such  list,  it  being  said  town's  proportion  of  the  state 
tax  for  the  year  18  ;  and  to  transmit  and  pay  the 
same  to ,  treasurer  of  state,  or  to  his  suc- 
cessor in  office,  and  to  complete  and  make  an  account 
of  your  collections  of  the  whole  sum  on  or  before  the 

—day   of next.     And  if  any  person  refuses   or 

neglects  to  pay  the  sum  which  he  is  assessed  in  said 
list,  you  shall  distrain  his  goods  or  chattels  to  the  value 
thereof  ;  and  keep  the  distress  so  taken  for  four  days 
at  the  cost  and  charge  of  the  owner ;  and  if  he  does  not 
pay  the  sum  so  assessed  within  said  four  days,  then  you 
shall  sell  at  public  veudue  such  distress  for  payment 
thereof  with  charges ;  first  giving  forty-eight  hours' 
notice  thereof  by  posting  advertisements  in  some  public 
place  in  the  town"  (or  plantation,  as  the  case  may  be  ;) 
•'and  the  overplus  arising  by  such  sale,  if  any,  beyond 
the  sum  assessed  and  the  necessary  charges  of  taking 
and  keeping  the  distress,  you  shall  immediately  restore 
to  the  owner  ;  and  for  want,  for  twelve  days,  of  goods 


152  REPORT    OF    TAX    COMMISSION. 

and  chattels,  whereon  to  make  distress,  except  imple- 
ments, tools  and  articles  of  furniture  exempt  from 
attachment  for  debt,  you  shall  take  the  body  of  such 
person  so  refusing  or  neglecting,  and  him  commit  to 
the  jail  of  the  county,  there  to  remain  until  he  pays  the 
same,  or  such  part  thereof,  as  is  not  abated  by  the 
assessors  for  the  time  being,  or  the  county  commis- 
sioners for  said  county 

Given  under  our  hands,  by  virtue  of  a  warrant  from 
the  treasurer  aforesaid,  this day  of ,  18 — . 

Assessors." 

And  a  certificate  of  the  assessment  of  any  state  tax 
shall  be  in  substance  as  follows : 

"Pursuant  to  a  warrant  from  the  treasurer  of  the 

State  of  Maine  dated  the day  of ,  18  —  ,  we  have 

assessed  the  polls  and  estates  of  the of ,  the 

sum  of dollars  and cents,  and  have  committed 

lists  thereof  to  the of  said ,  viz  :  to — , 

with  warrants  in  due  form  of  law  for  collecting  and 
paying  the  same  to —  — ,  treasurer  of  state,  or  his 

successor  in  office,  on  or  before  the day  of » 

next  ensuing. 

In  witness  whereof,  we  have  hereunto  set  o  ;r  hands 
at ,  this clay  of ,  18 — . 

!•  Assessors." 

Form  of  war-          SECT.   191.     The  warrant  for  collection  of  county  or 
rant  lor  collec- 
tion of  county     town  taxes,  shall  be  made  by  the  assessors  in  the  same 

and  town  taxes. 

tenor,  with  proper  changes. 
New  warrant          SECT.    192.       When  an  original   warrant   issued   by 

issued  in  case  of 

loss.  assessors  and  delivered  to  a  constable  or  collector  for 

collection  of  a  tax,  has  been  lost  or  destroyed  by  acci- 
dent, the  assessors  may  issue  a  new  warrant  for  that 
purpose,  which  shall  have  the  same  force  as  the  original. 

Town  collectors,      SECT   19o.     When  towns  choose  collectors,  they  may 

compensation 

and  appoint-      agree  what  sum  shall  be  allowed  for  performance  of 

certain  cases,     their  duties  ;  but  if  none  are  chosen,  or  if  those  chosen 

refuse  to  serve  or  give  the  requisite  bond,  the  assessors 

may  appoint  a  suitable  person  to  act  as  constable  and 

collector  for  the  collection  of  taxes  ;  and  if  the  person 


REPORT    OF    TAX    COMMISSION.  153 

BO  appointed  refuses  to  serve  or  to  give  the  requisite 
bond,  then  they  may  appoint  one  of  their  own  board  to 
act  as  constable  and  collector  for  the  collection  of  taxes. 

SECT.  194.     In  case  of  distress  or  commitment  for  Fees  and  travel 
non-payment  of  taxes,  the  officer  shall  have  the  same  of  C1°11('ct<>r- 
fees  which  sheriffs  have  for  levying  executions,  except 
that  travel,  in  case  of  distress,  shall  be  computed  only 
from  the  dwelling-house  of  the  officer  to  the  place  where 
it  is  made. 

SKCT.  195.     Every  collector  or  constable,  required  to  Collector  to 
collect  taxes,  shall  receive  a  warrant  from  the  selectmen  rant. 
or  assessors  of  the  kind  hereinbefore  mentioned,  and 
shall  faithfully  obey  its  directions. 

SECT.  196.  The  assessors  shall  require  such  con- TO  give  ap 
stable  or  collector  to  give  bond  for  the  faithful  discharge 
of  his  duty,  to  the  inhabitants  of  the  town,  in  such  sum, 
and  with  such  sureties,  as  the  municipal  officers  approve  ; 
and  bonds  of  collectors  of  plantations  shall  be  given  to 
the  inhabitants  thereof,  approved  by  the  assessors,  with 
like  conditions. 

SECT.  197.     When  a  tax  is  paid  to  a  collector  or  con-  constable?,  &c., 
stable,  he  shall  give  a  receipt  therefor  on  demand  ;  and  on?emand!ptB 
if  he  neglects  or  refuses  so  to  do.  he  forfeits  five  dollars 
to  the  aggrieved  party,  to  be  recovered  in  an  action  of 
debt. 

SECT.  198.     If  a  constable  or  collector  dies  before  if  collector  dies, 
perfecting  the  collection  of  an  assessment,  the  assessors  ap^oTntlne. 
shall  appoint,  at  the  charge  of  their  town,  some  suitable 
person  to  perfect  the  collection,  and  grant  him  a  suffi- 
cient warrant  for  that  purpose. 

SECT.    199.      All  plantations,  required  to   pay  any  plantations  may 
portion  of  the  public  taxes,  have  all  the  powers  of  towns  ors°.08e 
so  far  as  relates  to  the  choice  of  constables  and  col- 
lectors and  the  requiring  bonds  fi<om  them. 

SECT.  200.     If  a  person  refuses  to  pay  any  part  of  the  Collectors  to 

,  .       .  distrain  if  taxes 

tax  assessed  against  him  in  accordance  with  this  chapter,  are  not  paid, 
the  person  whose  duty  it  is  to  collect  the  same,  may 
distrain  him  by  any  of  his  goods  and  chattels  not  exempt, 
for  the  whole  or  any  part  of  his  tax,  and  may  keep  such 
distress  for  four  days  at  the  expense  of  the  owner,  and 
if  he  does  not  pay  his  tax  within  that  time,  the  distress 


154 


REPORT    OF    TAX    COMMISSION. 


— notice  of  sale 


Overplus. 


After  twelve 
days'  notice, 
may  imprison. 


—if  about  to 
abscond. 


When  payable 
by  instalments, 
whole  may  be 
demanded  of 
one  about  to 
remove. 


Former  collect- 
ors to  complete 
collections. 


Collectors  may 
distrain  shares 
in  a  corporation, 


Duties  of 
officers  of  the 
corporation. 


Collectors  may 
collect  in  any 
part  of  state,  of 
persons  re- 
moved. 


shall  be  openly  sold  at  vendue  by  the  officer  for  its  pay- 
ment. Notice  of  such  sale  shall  be  posted  in  some 
public  place  in  the  town,  at  least  forty-eight  hours  before 
the  expiration  of  said  four  days. 

SECT.  201.  The  officer,  after  deducting  the  tax  and 
expense  of  sale,  shall  restore  the  balance  to  the  former 
owner,  with  a  written  account  of  the  sale  and  charges. 

SECT.  202  If  a  person  so  assessed,  for  twelve  days 
after  demand,  refuses  or  neglects  to  pay  his  tax  and  to 
show  the  constable  or  collector  sufficient  goods  and 
chattels  to  pay  it,  such  officer  may  arrest  and  commit 
him  to  jail,  until  he  pays  it,  or  is  discharged  by  law. 
If  the  constable  or  collector  has  just  grounds  to  fear 
that  any  person  so  assessed  may  abscond  before  the 
end  of  said  twelve  days,  he  may  demand  immediate  pay- 
ment, and  on  refusal,  he  may  commit  him  as  aforesaid. 

SECT.  203.  When  a  tax  is  made  payable  by  instal- 
ments, anr1  any  person,  who  was  an  inhabitant  of  the 
town  at  the  time  of  making  such  tax,  and  assessed 
therein,  is  about  to  remove  therefrom  before  the  time 
fixed  for  any  payment,  the  collector  or  constable  may 
demand  and  levy  the  whole  tax,  though  the  time  for 
collecting  any  instalment  has  not  arrived  ;  and  in  default, 
of  payment  he  may  distrain  for  it,  or  take  the  course 
provided  in  section  two  hundred  and  two. 

SECT.  204.  When  new  constables  or  collectors  are 
chosen  and  sworn  before  the  former  officers  have  per- 
fected their  collections,  the  latter  shall  complete  the 
same,  as  if  others  had  not  been  chosen  and  sworn. 

SECT.  205.  For  non-payment  of  taxes,  the  collector 
or  constable  may  distrain  the  shares  owned  by  the  de- 
linquent in  the  stock  of  any  corporation  ;  and  the  same 
proceedings  shall  be  had  as  when  like  property  is  seized 
and  sold  on  execution. 

SECT.  206.  The  proper  officer  of  such  corporation,  on 
request  of  such  constable  or  collector,  shall  give  him  a 
certificate  of  the  shares  or  interest  owned  by  the  delin- 
quent therein,  and  issue  to  the  purchaser  certificates  of 
such  shares  according  to  the  by-laws  of  the  corporation. 

SECT.  207.  When  a  person  taxed  in  a  town  in 
which  he  was  living  at  the  time  of  assessment,  removes 
therefrom  before  paying  his  tax,  such  constable  or 


REPORT    OF    TAX    COMMISSION.  155 

collector  may  demand  it  of  him  in  any  part  of  the  state, 
and,  if  he  refuses  to  pay,  may  distrain  him  by  his 
goods,  and  for  want  thereof  may  commit  him  to  the  jail 
of  the  county  where  he  is  found,  to  remain  until  his 
tax  is  paid  ;  and  he  shall  have  the  same  power  to  dis- 
train property  and  arrest  the  body  in  any  part  of  the 
state,  as  in  the  place  where  the  tax  is  assessed. 

SECT.  208.     Any  collector  of  taxes,  or  his  executor  collector  or  ad- 

„          ,  . .  ,  .  ministrator  may 

or  administrator,  may,  after  due  notice,  sue  in  his  own  sue  lor  tax. 

name  for   any  tax,  in  an  action  of  debt,  and  no  trial 

justice  or  judge  of  any  municipal  or  police  court  before  ^7m-!yatry~ 

whom  such  suit  is  brought,  is  incompetent  to  try  the  caee- 

same  by  reason  of  his  residence  in  the  town  assessing 

said  tax.     Where  before  suit  the  person  taxed  dies  or  —when  up  costs 

for  plaintiff 

removes  to  any  other  town,  parish  or  place  in  the  state,  unless  demand 

'  before  suit. 

or,  being  an  unmarried  woman,  marries,  the  aforesaid 
notice  is  not  requisite,  but  the  plaintiff  shall  recover  no 
costs,  unless  payment  was  demanded  before  suit. 

SKCT.  209.  If  money  not  raised  for  a  legal  object, 
is  assessed  with  other  moneys  legally  raised,  the  assess- 
meiit  is  not  void ;  nor  shall  any  error,  mistake  or 
omission  by  the  assessors,  collector,  or  treasurer,  render 
it  void  ;  but  any  person  paying  such  tax,  may  bring  his  "P"/80118.  paj~ 
action  against  the  town  in  the  supreme  indicia!  court  m*y  recover  ot 

tONVll. 

for  the  same  county,  and  shall  recover  the  sum  not 
raised  for  a  legal  object,  with  twenty  five  per  cent, 
interest  and  costs,  and  any  damages  which  he  has  sus- 
tained by  reason  of  the  mistakes,  errors,  or  omissions 
of  such  officers. 

SECT.   210.      When    the    owner   of    improved    lands  Collections, 

now  made,  of 

living:  in  this  state,  but  not  in  the  town  where  the  estate  non-wddenta  of 

improved  lands. 

lies,  is  taxed,   and   neglects  for  six  months  after  the 
lists  of  assessment  are  committed  to  an  officer  for  col- 
lection, to  pay  his  tax,  such  officer  may  distrain  him 
by  his  goods  and  chattels,  and  for  want  thereof  may  -may  be  sued 
commit  him  to  jail  in  the  county  where  he  is  found  ;  or  months'  notice, 
after  two  months'  written  notice,  may  sue  him  for  such 
tax  in  his  own  name  in  an  action  of  debt. 

SECT.  211.  When  the  owner  or  possessor  of  goods,  wares  ^0^JjI°n  °J 
and  merchandise,  logs  timber,  boards  and  other  lumber,  ^°ajnproperty 
stock  in  trade,  including  stock  employed  in  the  business  residents. 


156  REPORT    OF    TAX    COMMISSION. 

of  any  of  the  mechanic  arts,  horses,  mules,  neat  cattle, 
sheep  or  swine,  resides  in  any  other  town  than  the  one 
in  which  such  personal  property  is  kept  and  taxed,  the 
constable  or  collector  having  a  tax  on  any  such  prop- 
erty for  collection,  may  demand  it  of  such  owner  or 
possessor  in  any  part  of  the  state,  and  on  his  refusal  to 
pay,  may  distrain  him  by  his  goods,  and  for  want  there- 
of, may  commit  him  to  jail  in  the  county  where  he  is 
found,  until  he  pays  it. or  is  discharged  by  law. 

Collectors  may  SECT.  212.  Any  collector  impeded  in  collecting- 
taxes,  in  the  execution  of  his  office,  may  require  proper 
persons  to  assist  him  in  any  town  where  it  is  necessary, 
and  any  person  refusing  when  so  required,  shall,  on 

—penalty  for  complaint,  pay  not  exceeding  six  dollars  at  the  discre- 
tion of  the  justice  before  whom  the  conviction  is  had, 
if  it  appears  that  such  aid  was  necessary  ;  and  on  de- 
fault of  payment,  the  justice  may  commit  him  to  jail 
for  forty-eight  hours. 

Collectors  to  SECT.  213.     Every  collector  of  taxes  shall  once  in 

exhibit  account  .  .,  . 

of  collections      two  months  at  least  exhibit  to  the  municipal  officers, 

once  in  two 

.months.  or  where  there  are  none,  to  the  assessors  of  his  town, 

a  just  and  true  account  of  all  moneys  received  on  taxes 
committed  to  him,  and  produce  the  treasurer's  receipts 
for  money  by  him  paid  ;  and  for  neglect,  he  forfeits  to 

jwj?iect.ty  fc  the  town  two  and  a  half  per  cent,  on  the  sums  com- 
mitted to  him  to  collect. 

Collectors  SECT.  214.  When  a  collector  having  taxes  commit- 

ay  ted  to  him  to  collect,  has  removed  ;  or  in  the  judgment 
Mils  of  the  municipal  officers,  assessors,  or  treasurer  of  a 
town,  or  committee  or  treasurer  of  a  parish,  is  about  to 
remove  from  the  state  before  the  time  set  in  his  war- 
rants to  make  payment  to  such  treasurer  ;  or  when  the 
time  has  elapsed,  and  the  treasurer  has  issued  his  war- 
rant of  distress  ;  in  either  case,  said  officers  or  com- 
mittee, may  call  a  meeting  of  such  town  or  parish,  to 
appoint  a  committee  to  settle  with  him  for  the  money 
that  he  has  received  on  his  tax  bills,  to  demand  and 
receive  of  him  such  bills,  and  to  discharge  him  there- 
from ;  said  meeting  may  elect  another  constable  or  col- 
lector, and  the  assessors  shall  make  a  new  warrant 

— new  warrant 

to  new  collector,  and  deliver  to  him  with  said  bills,  to  collect  the  sums 


REPORT    OF    TAX    COMMISSION.  157 

due  thereon,  and  he  shall  have  the  same  power  in  their 
collection  as  the  original  collector. 

SECT.  215.     If  such  collector  xor  constable  refuses  to  Penalty  for  re- 
fusing to  deliTer 
deliver  the  bills  of  assessment,  and  to  pay  all  moneys  tax  bills. 

in  his  hands  collected  by  him,  when  duly  demanded, 
he  forfeits  two  hundred  dollars  to  the  town  or  parish, 
as  the  case  may  be,  and  is  liable  to  pay  what  remains 
due  on  said  bills  of  assessment. 

SECT.  216.     When  a  constable  or  collector  of  taxes  Collector  be- 
coming inca- 
dies,  becomes  insane,  has  a  guardian,  or  by  bodily  in-  pabie, another 

h'rmities  is  incapable  of  doing  the  duties  of  his  office  appointed, 
before  completing  the  collection,  the  assessors  may  ap- 
point some  suitable  person  a  collector  to  perfect  such 
collection,  and  may  grant  him  a  warrant  for  the  pur- 
pose ;  and  he  shall  have  the  same  power  as  the  disqual- 
ified collector  or  constable  ;  but  no  person  shall  be  so 
appointed  without  his  consent ;  and  in  these  cases,  the 
assessors  may  demand  and  receive  the  tax  bills  of  any 
person  in  possession  thereof,  and  deliver  them  to  the 
new  collector. 

SECT.  217.     When  it  appears  that  such  insane  or  dis-  Sums  by  him 
qualified  constable  or  collector  had  paid  to  the  treasurer  relmS' to 
a  larger  sum  than  he  had  collected  from  the  persons  in 
his  list,  the  assessors  in  their  warrant  to  such  new  con- 
stable or  collector,  shall  direct  him  to  pay  such  sum  to 
the  guardian  of   such   insane,  or  to  such  disqualified 
constable  or  collector. 

SECT.  218.  The  treasurer  of  state  shall  issue  a  war-  Treasurer  of 
rant  of  distress,  signed  by  him,  against  any  constable 
or  collector  to  whom  a  tax  has  been  committed  for  col- 
lection,  who  is  negligent  in  paying  into  the  public  treas- 
ury the  money  required  within  the  time  limited  by  law  ; 
and  shall  direct  it  to  the  sheriff  of  the  county  in  which 
such  negligent  officer  lives,  or  to  his  deputy  returnable 
in  sixty  days  from  its  date,  to  cause  the  sum  due  to  be 
levied,  with  interest  from  the  day  fixed  for  payment, 
and  fifty  cents  for  the  warrant,  by  distress  and  sale  of 
such  deficient  officer's  real  or  personal  estate,  returning 
any  overplus  that  there  may  be,  and  for  want  thereof, 
to  commit  him  to  iail  until  he  pays  it ;  and  the  sheriff  —unsatisfied 

J  warrants  may 

shall  obey  such  warrant.      \\  arrants  not  satisfied  may  be  renewed. 


158 


REPORT    OF    TAX    COMMISSION. 


Shall  issue  oxc- 


municipal 


County  treas- 


Town  to  pay, 


Assessors  to 
assessment! 


against  them. 


—if  not  paid 

within  three 

months,  war- 

rant  to  be  issued 

against  innab- 


Collector  re- 
t£wnfo? 


be  renewed  for  the  amount  unpaid,  and  shall  be  of  like 
validity  and  executed  in  like  manner. 

SECT.  219.  When  the  time  for  collecting  a  state  tax 
nas  exPirec^  ancl  ifc  is  unpaid,  the  treasurer  of  state 
shall,  at  the  request  of  the  municipal  officers  of  any 
town,  issue  his  execution  against  the  collector  thereof. 

SECT.  220.  If  a  collector  of  any  town  fails  to  pay 
tbe  county  tax  for  forty  days  after  the  time  fixed  there- 
for'  tne  county  treasurer  shall  issue  his  warrant  against 
him  in  due  form  of  law,  returnable  in  three  months 
from  its  date,  directed  to  the  sheriff  or  his  deputy, 
requiring  him  to  collect  the  tax,  with  six  per  cent. 
interest  thereon  from  the  time  it  was  payable,  fifty  cents 
for  the  warrant,  and  his  own  legal  fees. 

SECT.  221.  If  a  deficient  constable  or  collector  has 
no  estate  which  can  be  distrained,  and  his  person  can- 
not be  found  within  three  months  after  a  warrant  of 
distress  issues  from  the  treasurer  of  state,  or,  if  being 
committed  to  jail,  he  does  not  within  three  mouths 
satisfy  it,  his  town  shall,  within  three  months  more, 
pay  to  the  state  the  sums  due  from  him. 

SECT.  222.  The  assessors  having  written  notice  from 
such  treasurer  of  the  failure  of  their  constable  or  col- 
lector, shall  forthwith,  without  any  further  warrant. 
assess  the  sum  so  due  upon  the  inhabitants  of  their 
town  as  the  sum  so  committed  was  assessed,  and  com- 
m^  ^  to  another  constable  or  collector  for  collection  ; 
and  jf  taey  neglect.  the  state  treasurer  shall  issue  his 
warrant  against  them  for  the  whole  sum  due  from  such 
constable  or  collector,  which  shall  be  executed  by  the 
sheriff  or  his  deputy,  as  other  warrants  issued  by  such 
treasurer.  If  after  such  second  assessment,  the  tax  is 
not  paid  to  the  treasurer  within  three  months  from  the 

. 

date  of  its  commitment,  the  tieasurer  may  issue  his 
warrant  to  the  sheriff  of  the  county  requiring  him  to 
levy  it  on  real  and  personal  property  of  any  inhabitants 
of  the  town,  as  hereinbefore  provided. 

SECT.  223.  Such  deficient  collector  or  constable 
snall  at  all  times  be  answerable  to  such  inhabitants  for 
all  sums  which  they  have  been  obliged  to  pay  by  means 
of  his  deficiency,  and  for  all  consequent  damages. 


REPORT    OF    TAX    COMMISSION.  159 

SECT.  224.     If  a  collector  or  constable  of  a  town  or  When  coiiectpr 

dies,  admim>- 

parish  dies  without  settling  his  accounts  or  taxes  com-  trator  to  settle 

,      .    ,    .  within  two 

mitted  to  him  to  collect,  his  executor  or  administrator,  months;  failing 

to  do  so, charge- 
within   two  months  after  his  acceptance  of  the  trust,  able  with 

n  amount. 

shall  settle  with  such  assessors  for  what  was  received 
by  the  deceased  in  his  life  time  ;  with  the  amount  so 
received,  such  executor  or  administrator  is  chargeable 
as  the  deceased  would  be  if  living ;  and  if  lie  fails  so  to 
settle,  when  he  has  sufficient  assets  in  his  hands,  he 
shall  be  chargeable  with  the  whole  sum  committed  to 
the  deceased  for  collection. 

SECT.   225.     If  the  constable  or  collector  of  any  town  Treasurer  to  is- 

.  .         ,    _  ,     sue  his  warrant 

or  parish,  to  whom  taxes  have  been  committed  for  col-  against  deiin- 
lection,  neglects  to  collect  and  pay  them  to  the  treasurer  quei 
named  in  the  warrant  of  the  assessors  by  the  time  there- 
in stated,  such  treasurer  shall  issue  his  warrant,  return- 
able in  ninety  days,  and  in  substance  as  follows,  to  the 
sheriff  of  the  county  or  his  deputy,  who  shall  execute  it. 

"A.  B..  treasurer  of  the of ,  in  the  county  of  —form  of 

.  .       .,  warrant. 

,  to  the  sheriff  of  said  county,  or  his  deputy, 

GREETING. 

Whereas  C.  D.,  of  aforesaid,  (addition)  on  the 
day  of  ,18  ,  being  a  of  taxes  granted  and 
agreed  on  by  the  aforesaid,  had  a  list  of  assess- 
ments duly  made  by  the  assessors  of  the  aforesaid, 
amounting  to  the  sum  of  $  .  ,  committed  to  him 
with  a  warrant  under  their  hands,  directing  and  em- 
powering him  to  collect  the  several  sums  in  said  assess- 
ment mentioned,  and  pay  the  same  to  the  treasurer  of 
the  aforesaid  by  the  day  of  ,18  ,  but  the 
said  C.  D.  has  been  remiss  in  his  duty  by  law  required, 
and  has  neglected  to  collect  the  several  sums  aforesaid, 
and  pay  them  to  the  treasurer  of  the  aforesaid  ;  and 
there  still  remains  due  thereof  the  sum  of  8  .  , 
and  the  said  C  D  still  neglects  to  pay  it:  You  are 
hereby,  in  the  name  of  the  State,  required  forthwith  to 
levy  the  aforesaid  sum  of  $  .  ,  by  distress  and 
sale  of  the  estate,  real  or  personal,  of  said  C.  D.,  and 
pay  the  same  to  the  treasurer  of  said  ,  returning 
the  overplus,  if  any,  to  said  C.  D.  And  for  want  of 
such  estate,  to  take  the  body  of  said  C.  D.,  and  him 


160  REPORT  OF  TAX  COMMISSION. 

commit  to  the  jail  in  the  county  aforesaid,  there  to  re- 
main until  he  has  paid  the  said  sum  of  $  .  , 
with  forty  cents  for  this  warrant,  together  with  your 
fees,  or  he  is  otherwise  discharged  therefrom  by  order 
of  law ;  and  make  return  of  this  warrant  to  myself,  or 
my  successor,  as  treasurer  of  said  ,  within  ninety 
days  from  this  time,  with  your  doings  therein. 

Given  under  my  hand,  this         day  of         ,  in  the  year 
eighteen  hundred  and 

,  Treasurer  of         ." 

Sheriffs  ciut  SECT.     226.     On  each  execution  or  warrant  of  dis- 

warrant"*  SUCh  tl'ess  issuec^  ^J tne  treasurer  of  state,  or  by  the  treasurer 
of  a  county,  town,  or  parish,  against  a  constable  or  col- 
lector, and  delivered  to  a  sheriff  or  his  deputy,  he  shall 
make  return  of  his  doings  to  such  treasurer,  within  a. 
reasonable  time  after  the  return  day  thereiu  mentioned, 
with  the  money,  if  any,  that  he  has  received  by  virtue 
thereof  ;  and  if  he  neglects  to  comply  with  any  direction 
of  such  warrant  or  execution,  he  shall  pay  the  whole 
—treasurer  may  sum  mentioned  therein.  When  it  is  returned  unsatis- 
warrant.al  fied,  or  satisfied  in  part  only,  such  treasurer  may  issue 
an  alias  for  the  sum  due  on  the  return  of  the  first ;  and 
so  on,  as  often  as  occasion  occurs.  A  reasonable  time 
after  the  return  day,  shall  be  computed  at  the  rate  of 
forty-eight  hours  for  every  ten  miles  distance  from  the 
dwelling-house  of  the  sheriff  or  his  deputy  to  the  place 
where  the  warrant  is  returnable. 

warrants  to  be        SECT.  227.     When  a  sheriff  or  deputy  is  deficient  as 

coroner° when     aforesaid,  such  treasurers  may  direct  warrants  to  a  cor- 

quen? "  dehn~    oner  °^  ^ne  county,  requiring  him   to  distrain  therefor 

upon  the  delinquent's  real  or  personal  estate  ;  and  the 

coroner  shall  execute  such  warrants  as  a  sheriff  does  on 

deficient  constables  and  collectors. 

Property  dis-          SECT.  228.     Any    officer    selling   personal   property 

sokfaaoneie.    distrained  under  a  warrant  from  such  treasurers  against 

a  deficient  constable  or  collector,  shall  proceed  as  in 

the  sale  of  such  property  on  execution. 

Real  estate  SECT.  229.     When  a  warrant  of  distress  from  such 

taken,  how  noti-  ,  •      i       •     i  /?        i    &    • 

fied  to  be  sold,  treasurers  is  levied  on  the  real  estate  of  a  deficient  con- 
stable, collector,  sheriff,  or  deputy  sheriff,  for  the  pur- 
pose of  sale,  fourteen  days'  notice  of  the  sale,  and  of 


REPORT    OF    TAX    COMMISSIOV.  161 

the  time  and  place,  shall  be  given,  by  posting  adver- 
tisements in  two  or  more  public  places  in  the  town  or 
place  where  the  estate  lies,  and  in  two  adjoining  towns. 

SKCT.  "230.     At  that  time  and  place,  the  officer  hav-  Proceedings  at 
ing  such  warrant  shall  sell,  at  public  vendue,  so  much  8ale' 
of  such  estate,  in  common  and  undivided  with  the  resi-        , 
due,  if  any,  as  is  necessary  to  satisfy  the  sum  named 
in  the  warrant,  with  all  legal  charges  ;  and  execute  to  _deed  ^ade  to 
the  purchaser  a  sufficient  deed  thereof,  which  shall  be  convey  title. 
as  effectual  as  if  executed  by  the  deficient  owner. 

SECT.   231.     If    the    proceeds    of    such  sale    do   not  Proceedings 

when  body  is 

satisfy  such  sum  and  legal  charges,  the  treasurer  wno  taken, 
issued  the  warrant,  shall  issue  an  alias  warrant  for  the 
sum  remaining  due  ;  and  the  officer  executing  it  shall 
arrest  such  deficient  officer,  and  proceed  as  on  am 
execution  for  debt ;  and  such  deficient  officer  shall  have 
the  same  rights  and  privileges  as  a  debtor  arrested  or 
committed  on  execution  in  favor  of  a  private  creditor. 

SECT.   232.     When  any  constable  or  collector  of  taxes  —rights  and 

privileges  of 

is  taken  on  execution  under  this  chapter,  the  assessors  party  arrested. 

may  demand  of  him  a  true  copy  of  the  assessments, 

which  he  received  of  them  and  then  has  in  his  hands 

unsettled,  with    the    evidence  of    all  payments    made 

thereon  ;  and  if  he  complies  with  this  demand,  he  shall 

receive  such  credit  as  the  assessors,  on  inspection  of 

the  assessment,  adjudge  him    entitled  to,  and  account 

for  the  balance  ;  but  if  he  refuses,  he  shall  forthwith  be 

committed  to  jail  by  the  officer  who  so  took  him,  or  by 

a  warrant  from  a  justice  of  the  peace,  to  remain  there 

until  he  complies  ;  and  the  assessors  shall  take  and  use 

copies    of   the  record  of    assessments  instead   of   the 

copies  demanded  of  him. 

SECT.   233.     The  same  town  or  parish  may,  at  any  when  die- 
time,  proceed  to   the   choice    of  another    collector,  to 
complete  the  collection  of  the  assessments,  who  shall 
be  sworn  and  give  the   security  required  of  the  first taxes> 
collector ;  and  the  assessors  shall   deliver  to   him  the 
uncollected    assessments,    with    a    proper  warrant   for 
their  collection,   and  he  shall  proceed  as  before  pre- 
scribed. 

11 


1(52  REPORT    OF    TAX    COMMISSION. 

Collector  liable  SECT.  234.  When  the  tax  of  any  person  named  in 
h°erc?mnStseSB  said  assessment  does  not  thereby  appear  to  have  been 
within  a  year.  paici?  t>ut  such  person  declares  that  it  was  paid  to  the 
former  collector,  the  new  collector  shall  not  distrain 
Fees  for  com-  or  commit  him,  without  a  vote  of  such  town  or  parish 

mitment.  ,  firgt  certified  to  him  by  its  c}erk. 

SECT.  235.  When  a  town  neglects  to  choose  any 
officers  may  di-  constable  or  collector  to  collect  a  state  or  county  tax, 
taxeTto  be  eom- the  sheriff  of  the  county  shall  collect  it,  on  receiving 

menced  against 

any  delinquent,  an  assessment  thereof,  with  a  warrant  under  the  hands 
of  the  assessors  of  such  town,  duly  chosen,  or  appointed 

—proviso. 

by  the  county  commissioners,  as  the  case  may  be. 

SECT.  236.     When  plantations  neglect  to  choose  con- 
Towns  may  ap- 
point treasurer    stables  or  collectors,  or  if  those  chosen  and  accepting 

collector,  his 

assistants  to  give  their  trust  neglect  their  duty,  such  plantations  shall  be 
proceeded  against  as  in  the  case  of  deficient  towns  ;  and 
such  deficient  constables  or  collectors  are  liable  to  the 
same  penalties,  and  shall  be  removed  in  the  same  man- 
ner, as  deficient  constables  and  collectors  of  towns. 
Abatement  for        SECT.  237.     The  sheriff  or  his  deputy,  on  receiving 
ment  of  taxes."    such  assessment  and  warrant  for  collection  as  is  men- 
tioned in  the  two  preceding  sections,  shall  forthwith  post 
in  some  public  place  in  the  town  or  plantation  assessed, 
an  attested  copy  of  such  assessment  and  warrant,  and 
shall  make  no  distress  for  any  of  such  taxes  until  after 
thirty  days  therefrom  ;  and  any  person  paying  his  tax 
to  such  sheriff  within  that  time,  shall  pay  five  per  cent. 
~~ostedce  8baU  be  over  anc^  above  his  tax  for  sheriff's  fees,  and  no  more  ; 
but  those  who  do  not  pay  within  that  time  shall  be  dis- 
trained or  arrested  by  such  officer,   as  by  collectors  ; 
and  the  sheriff  may  require  aid  for  the  purpose,  and  the 
same  fees  shall  be  paid  for  travel  and  service  of  the 
sheriff,  as  in  other  cases  of  distress. 

Proceedings,  SECT.    238.      When  an  officer   appointed   to   collect 

taken  b0dy  ™  assessments  by  virtue  of  a  warrant,  for  want  of  prop- 
erty arrests  any  person  and  commits  him  to  jail,  he  shall 
give  an  attested  copy  of  his  warrant  to  the  jailer,  and 
certify,  under  his  hand,  the  sum  that  he  is  to  pay  as  his 
tax  and  the  costs  of  arresting  and  committing,  and  that 
for  want  of  goods  and  chattels  whereon  to  make  distress, 
he  has  arrested  him  ;  and  such  copy  and  certificate  are 


REPORT    OF    TAX    COMMISSION.  163 

a  sufficient  warrant  to  require  the  jailer  to  receive  and  —rights  and 

•  11  i  •  priviii  _ 

keep   such  person  in  custody^  until  he   pays  nis  tax,  party  arrested, 
charges,  and  thirty-three  cents  for  the  copy  of  the  war- 
rant ;  but  he  shall  have  the  rights  and  privileges,  men- 
tioned in  section  one  hundred  and  sixty-four. 

SECT.  2:')',).     When  a  person,  committed  for  non-pay-  when  dw- 

....  charged  from 

ment  of  taxes  due  to  the  state  or  county,  is  discharged  arrest,  town 

liable  for  state 

by  virtue  of  any  statute  for  the  relief  of  poor  prisoners  and  county 

J  taxes. 

confined  in  jail  for  taxes,  the  town  whose  assessors 
issued  the  warrant  by  which  he  was  committed  shall 
pay  the  whole  tax  required  of  it 

SECT.  240.     When  a  person  imprisoned  for  not  pa}T-  collector  liable 
ing  his  tax,  is  discharged,  the  officer  committing  him  he^mmlt?88 
shall  not  be  discharged  from  such  tax  without  a  vote  of  wlthin  ;l  ?***' 
the  town,  unless   he   imprisoned  him  within  one  year 
after  the  taxes  were  committed  to  him  to  collect. 

SECT.  241.      For  commitments  for  non-payment  of  rees  for  2 om- 
taxes,  the  officer  shall  have  the  same  fees  as  for  levying  m 
executions,  but  his  travel  shall  be  computed  only  from 
his  dwelling-house  to  the  place  of  commitment. 

SECT.  242.     In  addition  to  the  other  provisions  for  Municipal 
the  collection  of  taxes  legally  assessed,  the  mayor  and  re^'JiJ'foJ 
treasurer  of  any  city,  the  selectmen  of  any  town,  and  l£lnled  agahUS" 
the  assessors  of  any  plantation  to  which  a  tax  is  due,  a»y  delinquent, 
may  in  writing  direct  an  action  of  debt  to  be  commenced 
in  the  name  of  such  city  or  of  the  inhabitants  of  such 
town  or  plantation,   against  the  party  liable  ;    but  no 
such  defendant  is  liable  for  any  costs  of  suit,  unless  it  _provieo. 
appears  by  the  declaration  and  by  proof,  that  payment 
of  said  tax  had  been  duly  demanded  before  said  suit. 
'  SECT.  243      In  all  suits  to  collect  a  tax  on  real  estate,  Ia  8uits  to  col. 
if  it  appears  that  at  the  date  of  the  list  on  which  such 
tax  was  made  the  record  title  to  the  real  estate  listed 
was  in  the  defendant,  he  shall  not  deny  his  title  thereto  ; 
provided,  however,  if  any  owner  of  real  estate  who  has  thereu>- 
conveyed  the  same  shall  forthwith  file  a  copy  of  the  _proviso. 
description  as  given  in  his  deed,  with  the  date  thereof 
and  the  name  and  residence  of  his  grantee,  in  the  reg- 
istry of  deeds  where  such  deed  should  be  recorded,  he 
shall  be  free  from  any  liability  under  this  act.     When  "^jf^jfg 
such  suits  are  commenced  within  eighteen  mouths  from  Hen  on  land. 


164  REPORT    OF    TAX    COMMISSION. 

the  date  of  the  list,  after  such  notice  to  the  owners  as 
the  court  shall  order,  the  judgment  recovered  against 
the  defendant  therein  shall  be  a  lien  on  the  land  relating 
back  to  the  date  of  the  list  and  continuing  for  thirty 
days  after  rendition  of  judgment,  to  be  enforced  on 
execution  in  any  of  the  methods  now  provided  by  law. 


Duties  of  Town   Treasurers,  when   Appointed 
Collectors  of  Taxes. 

Towns  may  ap        SECT.  244.     The  inhabitants  of  a  town  may  in  March 

point  treasurer 

collector,  his       annually  appoint  their  treasurer  a  collector  of  taxes  ; 

assistants  to  give          ..  ,  .  .  . 

bend.  and  he  may  then  appoint  under  him  such  number  or 

assistants  as  are  necessary,  who  shall  give  bond  for  the 
faithful  discharge  of  their  duties  in  such  sum  and  with 
such  sureties,  as  the  municipal  officers  approve  ;  and  he 
shall  have  such  powers  as  are  vested  in  collectors  chos- 
en for  that  purpose 

Abatement  for        SECT.  245.     At  any  meeting,  when  it  votes  to  raise 

voluntary  pay- 

mem  of  taxes,  a  tax,  a  town  may  agree  on  the  abatement  to  be  made 
to  those  who  voluntarily  pay  their  taxes  to  the  collec- 
tor or  treasurer  at  certain  periods,  and  the  times  within 
which  they  are  so  entitled  ;  and  a  notification  of  such 
votes,  and  the  time  when  such  taxes  must  be  paid  to 

—notice  shall  be  obtain  the  abatement,  shall  be  posted  by  the  treasurer 
in  one  or  more  public  places  in  his  town,  within  seven 
days  after  such  commitment ;  and  all  who  so  pa}7  their 

—abatement not  taxes  are  entitled  to  such  abatement;    but  no  person 

to  exceed  ten 

per  cent,  of  tax.  shall  receive  an  abatement  of  more  than  ten  per  cent, 
of  his  tax  ;  and  all  taxes  not  so  paid  shall  be  collected 
by  the  collector  or  his  deputy,  under  the  other  provis- 
ions of  this  chapter. 

Assessors  to  SECT.  246.     The  assessors  of  any  town  which  at  its 

deposit  assess-  .  ,,       ,.,.., 

mentwith  annual  meeting  regulates  the  collection  or  its  taxes 
agreeably  to  the  two  preceding  sections,  shall  assess  the 
same  in  due  form,  and  deposit  them  in  the  hands  of  the 
treasurer  for  collection,  with  their  warrant  for  that  pur- 
pose, after  he  and  his  deputies  are  qualified. 

Treasurers'  SECT  247.     All  the  powers  granted  in  this  chapter  to 

KTclSiou6  treasurers,  who  are  appointed  collectors  of  taxes,  are 
is  completed.     extencjed  until  the  collection  of  any  tax  committed  to 


REPORT    OF    TAX    COMMISSION.  165 

them  has  been  completed,  notwithstanding  the  year  for 

which  they  were  appointed  has  elapsed. 

SECT.  21*.     The  municipal  officers  of  towns  shall  re-  Treasurcrto 
quire  the  treasurer  thereof  to  give  bond,  with  sufficient  ^ivol(0"d- 
sureties,  for  faithful  performance  of  the  duties  of  his 
office,  and  if  he  negl  cts  or  refuses,  it  shall  be  deemed 
a  refusal  to  accept  the  office,  and  the  town  shall  pro- 
ceed to  a  new  choice,  as  in  case  of  vacancy. 

SECT.  241).     Every  treasurer  shall  render  an  account  TO  render  ac- 
of  the  finances  of  his  town,  and  exhibit  all  books  and  Sn^omh". 
accounts  pertaining  to  his  office,  to  the  municipal  offic- 
ers thereof,  or  to  any  c  unmittee  appointed  by  it  to  ex- 
amine said  accounts,  when  required  ;  and  such  officers 
shall  examine  such  treasurer's  accounts  as  often  as  once 
in  three  months. 

SECT.   250.     The  treasurer  of  any  town  who  is  also  a  Treasurer  of 

,  .  town  who  is 

collector,  may  issue   his  warrant  to  the  snerirr  of   any  coiiectoi 
county  or  to  his  deputy,  or  to  a  constable  of  his  town, 
directing  him  to  distrain  the  person  ov  property  of  any  t: 
person  delinquent  in  paying  his  taxes,  after  the  expira- 
tion of  the  time  fixed  for  payment  by  vote  of  the  town  ;  — torm  of  war- 
which  warrant  shall  be  of  the  same  tenor  as  that  pre-  rant% 
scribed  to  be  issued  by  municipal  officers  or  assessors  to 
collectors,  with  the  appropriate  changes,  returnable  to  -when  retum- 
the  treasurer  in  thirty,  sixty  or  ninety  days. 

SECT.   251.     AVhen  such  treasurer  thinks  that  there  is  May  distrain 
danger  of  losing  by  delay  a  tax  assessed  on  any  indi-  due,  to  prevent 
vidual,  he  may  distrain  his  person  or  property  before 
the  expiration  of  the  time  fixed  by  vote  of  the  town. 

SECT.  252.     Before  such  officer  serves  any  such  war-  Ten  day?' notice 
rant,  he  shall  deliver  to  the  delinquent,  or  leave  at  his  ing. 
last  and  usual  place  of  abode,  a  summons  from  said 
collector  and  treasurer,  stating  the  amount  of  tax  due, 
and  that  it  must  be  paid  within  ten  days  from  the  time 
of  leaving  such  summons,  with  twenty  cents  for  the  f^es°o?officer 
officer  for  leaving  the  same  ;  and  if  not  so   paid,  the  **™,e  as  collec- 
officer  shall  serve  such  warrant  the  same  as  collectors 
of  taxes  may  do.  and  shall  receive  the  same  fees  as  for 
levying  executions  in  personal  actions. 


166 


REPORT    OF    TAX    COMMISSION. 


Affidavit  of 
person  posting 
notices  of  land 
sales,  evidence. 


Owners  of 
estate  taken  for 
default  of  oth- 
ers, may  re 
cover  its  value. 


— value  not 
determined  by 

sale. 


Warrants  re- 
turnable in 
three  months, 
and  may  be  re- 
newed. 


—sheriff  may 
execute  alias 
•warrant. 


Special  Provisions. 

SECT.  253.  The  affidavit  of  any  disinterested  person 
as  to  posting  notifications  required  for  the  sale  of  any 
land  to  be  sold  by  the  sheriff  or  his  deputy,  constable 
or  collector,  in  the  execution  of  his  office,  may  be  used 
in  evidence  in  any  trial  to  prove  the  fact  of  notice  ;  if 
such  affidavit,  made  on  one  of  the  original  advertise- 
ments, or  on  a  copy  of  it,  is  filed  in  the  registry  of  the 
county  or  district  where  the  land  lies,  within  six  months. 

SECT.  254  When  the  estate  of  an  inhabitant  of  a 
town  or  parish,  who  is  not  an  assessor  thereof,  is  levied 
upon  and  taken  as  mentioned  in  section  one  hundred 
and  eleven,  he  may  maintain  an  action  against  such 
town  or  parish,  and  recover  the  full  value  of  the  estate 
so  levied  on,  with  interest  at  the  rate  of  twenty  per 
cent,  from  the  time  it  was  taken,  with  costs  ;  and  such 
value  may  be  proved  by  any  other  legal  evidence,  as 
well  as  by  the  result  of  the  sale  under  such  levy. 

SECT.  255.  All  warrants  lawfully  issued  by  a  state 
or  county  treasurer,  shall  be  made  returnable  in  three 
months,  and  may  be  renewed  for  the  collection  of 
what  appears  due  upon  them  when  returned,  including 
expenses  incurred  in  attempting  to  collect  them  ;  and 
the  power  and  duty  of  the  sheriff  shall  be  the  same  in 
executing  such  alias  or  pluries  warrant,  as  if  it  were 
the  original. 


Lien  on  lands 
created  by  tax. 


Enforced   Collection  of  Taxes  on   Real   Estate. 
SECT.  256.      For  all  taxes  legally  assessed  on  real 
estate  and  on  equitable  interests  assessed  under  section 
three,  a  lien  is  created  which  may  be  enforced  by  attach- 
ment in  suit  authorized  as  provided   in  sections    two 
—how  enforced   nun^rec^  anc^  eight  and  two  hundred  and  ten  or  two 
hundred  and  forty-two  to  be  made  within  two  years 
—land  may  be    f  rom  date  of  the  original  commitment,  or  by  sale  in  the 
manner  and  within  the  time  hereinafter  provided. 


sold. 


REPORT    OF   TAX    COMMISSION.  1  6T 


Collectors'  Notice  of  Sale. 

SI-XT.  257.     If  any  such  tax  remains  unpaid  for  nine  Proceeding  in 
months  from  the  date  of  the  commitment  the  collector 
may  give  notice  thereof,  and  of  his  intention  to  sell  so 
much  of  such  real  estate  or  interest  as  is  necessary  for  —notices,  how 
the  payment  of  said  tax  and  all  the  charges,  by  posting  ** 
notices  thereof  in  the  same  manner  and  at  the  same  places 
that  warrants  for  town  meetings  are  therein  required  to 
be  posted,  six  weeks  before  the  day  of  sale,  designating  _what  notice 
the  name  of  the  owner,  if  known,  the  right,  lot,  and  must contain- 
range,  the  number  of  acres  as  nearly  as  may  be,  the 
amount  of  tax  due,  and  such  other  short  description 
taken  from  the  inventory  as  is  necessary  to  render  its 
identification    certain    and    plain,    with   the   valuation 
thereof,  and  shall  cause  said  notice  to  be  published  in  _notice must*be 
some  newspaper,  if  any,  published  in  the  county  where 
such  real  estate  lies,  three  weeks  successively  ;    such 
publication  to  begin  six  weeks  before  the  day  of  sale  ; 
if  no  newspaper  is  published  in  said  county,  said  notice 
shall  be  published  in  like  manner  in  the  state  paper ;  —or  in  state 
he  shall  in  the  notices  and  advertisements  so  posted  and 
published,  state  the  name  of  the  town,  and  if  within 
three  years  it  has  changed,  for  the  whole  or  a  part  of 
the  territory,  both  the  present  and  former  name  shall —further par- 

-  '  ticulars  to  be 

be  stated,  and  that  if  the  taxes,  interest  and  charges  stated  in  the 

notices. 

are  not  paid  within  eighteen  months  from  the  date  of 
commitment,  so  much  of  the  estate  as  is  sufficient  to 
pay  the  amount  due  therefor,  with  interest  and  charges, 
will  be  sold  without  further  notice,  at  public  auction,  at 
a  place,  day  and  hour  therein  named,  after  the  expira- 
tion of  the  eighteen  months  and  not  exceeding  twenty 
months  from  the  date  of  commitment.  The  date  of 
commitment,  the  name  of  the  collector,  and  notice  that 
nine  months  have  elapsed  since  the  date  of  the  commit- 
ment of  said  tax  to  the  collector,  shall  be  stated  in  the 
advertisement.  Said  collector  shall  lodge  with  the  town  _copy  of  notice 
clerk  a  copy  of  such  notice,  with  his  certificate  thereon  Jown  clerk's 
that  he  has  given  notice  of  the  intended  sale  as  required 
by  law.  Such  copy  and  certificate  shall  be  recorded  by  cate- 
said  clerk  and  the  record  so  made  shall  be  open  to  the 
inspection  of  all  persons  interested.  The  clerk  shall 


168 


REPORT    OF    TAX    COMMISSION. 


furnish  to  any  person  desiring  it  an  attested  copy  of 

such  record,  on  receiving  payment  or  tender  of  payment 

—notice  of  sales  of  a  reasonable  sum  therefor;    but  notices  of  sales  of 

of  land  in  vil- 
lages for  cor-      real  estate  within  any  village  corporation  for  unpaid 

poration  taxes.  J 

taxes  of  said  corporation  may  be  given  by  notices 
thereof  posted  in  the  same  manner  and  at  the  same 
places  as  warrants  for  corporation  meetings  and  by 
publication  as  aforesaid. 


Form  of  col- 
lector's notice. 


Form. 

SECT.  258.  The  notice  and  advertisement  of  the  col- 
lector shall  be  in  substance  as  follows  : 

"Unpaid  taxes  on  lands  of  resident  and  non-resident 
owners,  situated  in  the  town  of  ,  in 

the  County  of  ,  in  the  year 

(N.  B.)     The  name  of  the  town  was  formerly 

(to  be  stated  in  case  of  change  of  name, 
as  mentioned  in  section  257).  •  "The  following  list  of 
taxes  on  real  estate  of  resident  and  non-resident  own- 
ers in  the  town  of  ,  for  the  year  , 
committed  to  me  for  collection  for  said  town,  on  the 
day  of  ,  18  , 

more  than  nine  months  since,  remain  unpaid  ;  and  no- 
tice is  hereby^  given  that  if  said  taxes,  interest  and 
charges  are  not  paid  within  eighteen  months  from  the 
date  of  commitment  of  said  bills,  so  much  of  the  real 
estate  taxed  as  is  sufficient  to  pay  the  amount  due 
therefor,  including  interest  and  charges,  will  be  sold  at 
public  auction  at  ,  in  said  town,  on  the 

day  of  ,  18      ,  at  o'clock 

M."  (N.  B.  Here  follows  the  list,  a  short  descrip- 
tion of  each  parcel  taken  from  the  inventory  to  be  in- 
serted in  an  additional  column.) 

C.  D.,  Collector  of  Taxes,  of  the  town 
of 


RKPOKT    OF    TAX    COMMISSION.  169 

Special  Notices  to  Owners. 
SECT.  'J59.     After  the  land  is  so  advertised,  and  at  Owner  of  adrer- 

,      ..    tised  lands  to  l»c 

least  tfii  davs  before  the  da/  of  sale,  the  collector  shall  notitieiUpei-iai- 

.  ,  ,  , ,  /?    •/?  lv  bv  the  col- 

notify  the  owner  if  resident,  or  occupant  thereof,  if  any,  lector. 

of  the  time  and  place  of  sale  by  delivering  to  him  in 
person,  or  leaving  at  his  last  and  usual  place  of  abode, 
a  copy  of  such  notice  signed  by  him,  stating  the  time 
and  place  of  sale  and  the  amount  of  taxes  due.  In 

of  non-resident  owners  of  unoccupied  lands  notice  ^jyjjjjjjjji1* 
shall  be  sent  by  mail  to  the  last  and  usual  address,  if  mail- 
known  to  the  collector,  ten  days  before  the  day  of  sale. 

SECT.   260.     When  no  person  appears  to  discharge  proceeding  at 
the  taxes  duly  assessed  on  any  real  estate  so  advertised,  sa 
with  costs  of  advertising,  on  or  before  the  time  of  sale, 
the  collector  shall  proceed  to  sell  at  public  auction  to 
the  highest  bidder  so  much  of  such  real  estate  or  interest 
as  is  necessary  to  pay  the  tax  due,  with  five  dollars  for  _Cost*spect- 
advertising  and  selling  it,  and  twenty -five  cents  more  he  ' 
for  each  copy  required  to  be  lodged  with  the  town  clerk, 
and  sixty-seven  cents  for  the  deed  thereof,  and  certifi- 
cate of  acknowledgment.     If  the  bidding  is  for  less  _biddin»  may 
than  the  whole,  it  shall  be  for  a  fractional  part  of  the  J^o/Sp110"*1 
estate,  and  the  bidder  who  will  pay  the  sum  clue  for  the  delinquent  land, 
least  fractional  part  shall  be  the  purchaser.     If  more 
than  one  right,  lot  or  parcel  of  land  is  so  advertised 
and  sold,  said  charge  of  five  dollars  shall  be  divided 

—fees  divided 

equally  among  the  several  rights,  lots  or  parcels  adver-  when  more  than 

i    "  one  lot  is  sold. 

tised  and  sold  at  any  one  time  ;  and  the  collector  shall 
receive  in  addition,  fifty  cents  on  each  parcel  of  real 
estate  so  advertised  and  sold,  when  more  than  one 
parcel  is  advertised  and  sold. 

Collector's  Return  of  Sale. 

'SECT.  261.  The  collector  making  any  sale  of  real  collector's 
-estate  for  non-payment  of  taxes,  shall,  within  thirty 
days  after  such  sale  make  a  return,  with  a  particular 
statement  of  his  doings  in  making  such  sale,  to  the 
clerk  of  his  town  ;  who  shall  record  it  in  the  town  -clerk  must  re- 

,  ,          .  ,  ./.i  T  T  cord  the  return. 

records  ;   and   said   return,  or  it  lost  or  destroyed,  an 
attested  copy  of  the  record  thereof,  shall  be  evidence  —record,  or,  if 
of  the  facts  therein   set  forth  in  all  cases  where  such 
(Collector  is  not  personally  interested. 


170  REPORT    OF    TAX    COMMISSION. 


Form. 

Form  of  collect.      SECT.  262.     The  collector's  return  to  the  town  clerk 
shall  be  in  substance  as  follows  : 

"Pursuant  to  law  I  caused  the  taxes  assessed  on  the 
real  estate  described  herein,  situated  in  the  town  of 
,  for  the  year  ,  to  be  adver- 

tised according  to  law  by  posting  notices  as  required  by 
law  and  by  advertising  in  the  three 

weeks  successively  the  first   publication  being  on  the 
day  of  and  at  least  six  weeks 

before  the  day  of  sale  ;  I  also,  at  least  ten  days  before 
the  day  of  sale,  notified  the  owners  or  occupants  of 
said  lands,  and  addressed  to  the  non-resident  owners 
of  unoccupied  lands  whose  addresses  were  known  to 
me,  notice  of  the  time  and  place  of  said  sale  in  the 
manner  provided  by  law  ;  and  afterwards  on  the 
day  of  ,  18  ,  at 

,  in  said  ,  at 

o'clock,  M.,  being  the  time  and  place  of  sale,  I  pro- 
ceeded to  sell  according  to  the  tenor  of  the  advertise- 
ment, the  estates  upon  which  the  taxes  so  assessed 
remained  unpaid  ;  and  in  the  schedule  following  is  set 
forth  each  parcel  of  the  estate  so  offered  for  sale,  the 
amount  of  taxes,  and  the  name  of  the  purchaser ;  and 
I  have  made  and  executed  deeds  of  the  several  parcels- 
to  the  several  persons  entitled  thereto,  and  placed  them, 
on  file  in  the  town  treasurer's  office,  to  be  disposed  of 
as  the  law  requires. 

SCHEDULE    NO.  1. 


Name  of        Description         Amount  of  tax.         Quantity    :     Xam^  of 
owner.        of  property,    interest  and  charges.         sold.'       pinvhasei 


In  witness  of  all  which  I  have  hereunto  subscribed 

my  name,  this day  of ,  18 — . 

C.  D..  Collector  of  taxes  of  the 
town  of  ." 

For  his  fidelity  in  discharging  the  duties  herein  required,, 
the  town  is  responsible,  and  has  a  remedy  on  his  bond 
in  case  of  default.  He  may,  if  necessary  to  complete 
the  sale,  adjourn  the  auction  from  day  to  day. 


REPORT  OF  TAX  COMMISSION.  171 


Collector's  Certificate. 

SECT.  263.     When  real  estate  is  so  sold  for  taxes, 
the  collector  shall,  within  four  days  after  the  day  of  onin-  it 

sale,  lodo-e  with  the  treasurer  of  his  town  a  certificate  must  be  lodged 

in  treasurer's 

under  oath  designating:  the  quantity  of  land  sold,  the  office  with  the 

deed  of  land 

names  of  the  owners  of  each  parcel,  and  the  names  of  sold. 
the  purchasers  ;  what  part  of  the  amount  of  each  was 
tax,  and  what  was  cost  and  charges  ;  also  a  deed  con- 
taining a  description  of  each  parcel  sold,  running  to 
the  purchasers  . 

SECT.  264.     The  treasurer  shall  not  deliver  the  deeds  Deed  not  to  be 

....         ~»  ,       delivered  until 

to  the  grantees  but  put  them  on  tile  in  nis  otnce,  to  be  oue  year  after. 

delivered  at  the  expiration  of  one  year  from  the  day  of 

sale,  in  case  the  owner  does  not  within  that  time  redeem 

his  estate  from   the  sale,   by  payment   of  the   taxes, 

interest  at  the  rate  aforesaid  to  the  time  of  redemption, 

and  costs  as  above  provided,  with  sixty-seven  cents  for 

the  deed  and   certificate  of  acknowledgment.     If  the 

deed  is  recorded  within  twenty-five  months  after  the  dee?.°n 

day  of  sale,  no  intervening  attachment  or  conveyance 

shall  affect  the  title. 


Redemption    Within   Two    Years 
SECT.   265.      Any  person,  to  whom  the  right  by  law  Proprietor  may 

....  .     redeem  within 

belongs,  may,  at  any  time  within  two  years  alter  such  two  years. 
certificate   is   lodged  with   the  town   treasurer,  redeem 
any  real  estate  or  interest  of  resident  or  non-resident 
proprietors   sold   for  taxes,   on  paying    into  the  town 
treasury  for  the  purchaser,  the  full  amount  so  certified 
to  be  due,   both  taxes   and  costs,   including  the  sum 
allowed  for  the  deeds,  with  interest  on  the  whole  at  the 
rate  of  twenty  per  cent,  a  year  from  the  date  of   said —money  to  be 
certificate,    which  shall  be  received  and   held   by  said  treasurer  L 
treasurer  as  the  property  of  the  purchaser  aforesaid  ;  chafer.3  ( 
and  the  treasurer   shall  pay  it  to  said   purchaser,  his 
heirs,  or  assigns,  on  demand  ;   and   if  not  paid  when 
demanded,  the  purchaser  may  recover  it  in  any  court  of 
competent  jurisdiction,  with   costs  and  interest  at  the 
ate   of   twenty   per   cent,    after   such   demand.     The 
sureties  of  the  treasurer  shall  pay  the  same  on  failure 


172 


REPORT    OF    TAX    COMMISSION. 


— town  liable 
therefor. 


Deed  to  be  de- 
livsred  to  pur- 
chaser, if  not 
redeemed. 


—penalty,  if 
treasurer  re- 
fuses to  deliver 
deed. 


of  said  treasurer.  And  in  default  of  payment  by  either, 
the  town  or  plantation  shall  pay  the  same  with  costs 
and  interest  as  aforesaid. 

SECT.  266.  If  no  person  having  legal  authority  so 
to  do  redeems  the  same  within  the  time  aforesaid  by 
paying  the  full  amount  required  by  this  chapter,  said 
treasurer  shall  deliver  to  the  purchaser  the  deeds  so 
lodged  with  him  by  the  collertor ;  and  if  he  wilfully 
refuses  to  deliver  such  deed  to  such  purchaser,  on 
demand,  after  said  two  years  and  forfeiture  of  the  land 
as  aforesaid,  he  forfeits  to  said  purchaser  the  full  value 
of  the  property  so  to  be  conveyed,  to  be  recovered  in 
an  action  of  debt,  with  costs  and  interest  as  in  other 
cases  ;  the  sureties  of  said  treasurer  shall  make  good 
the  payment  here  required,  in  default  of  payment  by 
the  principal ;  and  on  the  failure  of  both,  the  town  is 
liable. 


Tax  sales  must 
be  made  within 
two  years  after 
date  of  original 
commitment. 


— proviso. 


Record  of 
notice  to  be 
conclusive  evi- 
-dence  of  it. 


Treasurer's 
receipt  is  evi- 
dence of  re- 
demption. 


Within  What  Time  Sales  Must  be  Made. 

SECT.  267.  No  sale  of  real  estate  for  non-payment 
of  taxes  under  this  chapter  shall  be  made  by  any  officer 
to  whom  a  warrant  for  their  collection  has  been  com- 
mitted after  two  years  from  the  date  of  the  original 
commitment  of  such  taxes,  provided  that  this  section 
shall  not  be  construed  to  apply  to  sales  on  executions, 
on  attachments  to  enforce  tax  liens. 

SECT.  268.  The  copy  of  the  notice  of  sale  and  the 
certificates  thereon,  deposited  with  the  town  clerk,  as 
required  in  section  one  hundred  and  ninety-three,  or  if 
they  are  lost  or  destroyed,  an  attested  transcript  of  the 
town  clerk's  record  thereof  ;  shall  be  conclusive  evi- 
dence that  such  notice  was  given  as  is  required  by  this 
chapter  in  the  trial  of  all  issues,  in  which  the  collector 
who  made  the  sale  is  not  personally  interested. 

SECT  26U.  The  treasurer's  receipt  or  certificate  of 
payment  of  a  sufficient  sum  to  redeem  any  lands  taxed 
as  aforesaid,  shall  be  legal  evidence  of  such  payment 
and  redemption. 


REPORT    OF    TAX    COMMISSION.  173- 


Additional  Provisions. 

SECT.  -270.     The  municipal  Officers  may  employ  one  Kstatl .  ,imybe 
«>f  their  own  number,  or  some  other  person,  to  attend  bl 
the  sale  for  taxes  of  any  real  estate,  in  which  their  town 
is  interested,  and  bid  ttierefor  a  sum  sufficient  to  pay 
the  amount  due  and  charges,  in  behalf  of  the  town,  and 
the  deed  shall  be  made  to  it. 

SECT.  271.     In  all  cases  where  real  estate  has  been  owner  may  re- 
sold for  state,  county  or  town  taxes,  the  owner  may,  reSfredto'be* 
within  the  time  allowed  by  law,  pay  the  sums  necessary  ent?ticdPer 
to  redeem  the  same,   into  the  treasury  of  the  state, 
county  or  town  to  which  the  tax  is  to  be  paid,  and  such 
payment  seasonably  made  shall  redeem  the  estate.     The 
treasurer  shall  pay  the  amount  so  received  by  him  to 
the  person  entitled  thereto  according  to  the  records  and 
documents  in  his  office. 

SECT.  272.  In  the  trial  of  any  action  at  law  or  in  validity  of  sale- 
equity  involving  the  validity  of  any  sale  of  real  estate 
for  non-payment  of  taxes  effected  since  March  three, 
eighteen  hundred  and  seventy-four,  it  shall  be  sufficient 
for  the  party  claiming  under  it,  in  the  first  instance,  to 
produce  in  evidence  the  collector's  or  treasurer's  deed, 
duly  executed  and  recorded,  and  then  he  shall  be  enti- 
tled to  judgment  in  his  favor  unless  the  party  contest- 
ing  such  sale,  or  the  person  under  whom  he  claims, 
shall  have  deposited  with  the  clerk  of  the  court  in 
which  such  action  is  pending,  before  the  beginning  of 
his  said  action  or  defence  the  amount  of  all  such  taxes, 
inteiest  and  costs  accruing  under  such  sale,  and  of  all 
taxes  paid  after  such  sale,  and  interest  thereon,  to  be 
paid  out  by  order  of  court  to  the  party  legally  and  eq- 
uitably  entitled  thereto,  and  then  he  may  be  admitted  l 
to  prosecute  or  defend  ;  but  if  the  other  party  then  pro-  charges  are  paid 

J  into  court. 

duces  in  addition  to  the  deed  as  aforesaid  the  assess- 
ments signed  by  the  assessors  and  their  warrant  to  the 
collector,  and  proves  that  such  collector  or  treasurer 
complied  with  the  requirements  of  law  in  advertising  —when  the 

0  other  party  may 

and  selling  such  real  estate,  he  shall  have  judgment  in  have  judgment. 
his  favor  ;  and  in  all  such  actions  involving  the  validity 
of  sales  made  after  this  act  takes  effect,  the  collector's 


174 


REPORT    OF    TAX    COMMISSION. 


return  to  the  town  clerk,  the  town  clerk's  record,  or  if 
lost  or  destroyed,  said  clerk's  attested  copy  of  such 
fact8euiic|edc  °f  record  as  provided  in  section  two  hundred  and  sixty- 
one,  shall  be  conclusive  evidence  of  all  facts  there- 
in alleged. 

SECT.  273.  The  foregoing  section  shall  not  be  con- 
strued to  relieve  any  collector  from  liability  for 
damages  occasioned  to  any  party  by  his  negligence  or 
misfeasance  as  such  collector. 

in  suits  to  col-  SECT.  274.  In  all  suits  to  collect  a  tax  on  real 
estate,  if  record  estate,  if  it  appears  that  at  the  date  of  the  list  on  which 
be  ina5efenr<Lnt,  such  tax  was  made  the  record  title  to  the  real  estate 
listed  was  in  the  defendant,  he  shall  not  deny  his  title 


— return  and 
record  or  copy 
when  conclu- 


therein. 


But  not  to  re- 
lieve from  neg- 
ligence of 
collector. 


deny  his  titl 
thereto. 

— proviso. 


—when  .judg- 
ment shall  be 
lien  on  land. 


thereto  ;  provided,  however,  if  any  owner  of  real  estate 
who  has  conveyed  the  same  shall  forthwith  file  a  copy 
of  the  description  as  given  in  his  deed,  with  the  date 
thereof  and  the  name  and  residence  of  his  grantee,  in 
the  registry  of  deeds  where  such  deed  should  be 
recorded,  he  shall  be  free  from  any  liability  under  this 
act.  When  such  suits  are  commenced  within  eighteen 
months  from  the  date  of  the  list,  after  such  notice  to 
the  owners  as  the  court  shall  order,  the  judgment 
recovered  against  the  defendant  therein  shall  be  a  lien 
on  the  land  relating  back  to  the  date  of  the  list  and 
continuing  for  thirty  days  a'ter  rendition  of  judgment, 
to  be  enforced  on  execution  in  any  of  the  methods  now 
provided  by  law. 


REPORT    OF    TAX    COMMISSION.  175 


An  Act   to  amend    sections  seventy-nine,  eighty-two  and 
eighty-three  of  Chapter  Three  of  the  Revised  Statutes. 

Sections  seventy-nine,  eighty-two  and  eighty-three  of  chapter 
three  of  the  Revised  Statutes  are  amended  by  striking  out  the  words 
4 'state  treasurer"  and  "treasurer  of  state"  wherever  they  occur  in 
said  sections  and  by  inserting  instead  thereof  in  each  instance  the 
words  "state  assessors  ;"  and  by  striking  out  the  last  word  in  sec- 
tion seventy-nine  and  inserting  the  word  "them"  instead  thereof, 
so  that  said  sections  as  amended  shall  read  as  follows : 

".SECT.  79.  The  assessors  first  chosen  in  plantations  organized 
under  section  seventy-one,  shall  immediately  take  an  inventory  of 
the  polls  and  valuation  of  the  property  therein,  as  the  same  as  taken 
in  towns,  and  return  them  on  or  before  the  fifteenth  da}T  of  May 
following  their  election,  to  the  county  commissioners  of  their  county, 
who  may  examine  and  correct  the  same  so  as  to  make  it  conform 
to  the  last  state  valuation,  and  return  a  copy  of  such  corrected  val- 
uation to  the  state  assessors,  and  thereupon  their  ratable  proportion 
according  to  such  valuation,  of  all  state  and  county  taxes,  shall  be 
assessed  on  such  plantations  in  the  same  manner  as  on  towns  ;  and 
such  plantations,  and  also  such  as  may  by  special  order  of  the  leg- 
islature be  required  to  pay  state  or  county  taxes,  may  raise  money 
by  taxation  for  making  and  repairing  ways  in  compliance  with 
chapter  eighteen,  sections  thirty-nine  and  ninety-seven.  Such  in- 
ventory and  valuation  in  any  plantation  shall  be  so  taken,  corrected 
and  returned  to  the  state  assessors  whenever  required  by  them." 

"SECT.  82.  When  towns  are  incorporated,  the  assessors  thereof 
shall  return  to  the  county  commissioners  of  their  county  the  original 
valuation  first  taken  in  their  towns,  on  or  before  the  fifteenth  day 
of  May  next  following  their  incorporation,  and  said  valuation  shall 
be  examined,  corrected,  and  a  copy  thereof  returned  to  the  state 
assessors,  to  become  the  basis  of  state  and  'county  taxes  in  the  same 
manner  as  the  valuation  of  plantations,  as  provided  in  section 
seventy-nine." 

"SECT.  83.  If  such  valuation  is  not  made  and  returned  by  any 
town  or  plantation  within  the  time  specified,  the  county  commis- 
sioners shall  appoint  three  suitable  persons  of  the  county  to  be 


176  REPORT    OF    TAX    COMMISSION. 

assessors  therein,  who  shall  be  sworn  and  make  and  return  the 
inventory  and  valuation  required,  within  the  time  fixed  by  said 
commissioners  ;  and  such  valuation  shall  be  examined,  corrected, 
and  a  copy  thereof  returned  to  the  state  assessors,  and  become  a 
basis  for  the  assessment  of  state  and  county  taxes,  in  the  same 
manner  as  if  the  valuation  had  been  taken  by  the  assessors  chosen 
by  said  town  or  plantation." 


An  Act  to  amend  sections  twelve  and  thirty-two  of  Chapter 
Three  of  the  Revised  Statutes. 

SECT.  1.  Section  twelve  of  chapter  three  of  the  Revised  Statutes 
is  amended  by  adding  to  said  section  the  words  following  :  '-Towns 
having  less  than  two  thousand  inhabitants,  by  the  last  preceding 
census,  may  choose  three  or  more  assessors  or  the  selectmen  may  be 
assessors  as  provided  by  section  one  hundred  and  seventy  of  chapter 
six  ;  but  towns  having  more  than  two  thousand  inhabitants,  by 
such  census,  shall  choose  three  or  five  assessors  as  follows  :  At 
the  annual  town  meeting  next  held  after  this  act  becomes  operative r 
if  such  town  shall  elect  three  assessors  it  shall  elect  one  of  them  to 
serve  for  one  year,  one  for  two  years  and  one  for  three  years  and 
one  at  each  annual  meeting  thereafter  to  serve  for  three  years  ;  if 
such  town  shall  elect  Jive  assessors,  two  of  them  shall  be  elected 
for  one  year,  two  for  two  years  and  one  for  three  years,  and  there- 
after, at  each  annual  meeting,  shall  elect  one  or  two  for  three  years 
as  their  terms  shall  expire.  In  towns  having  more  than  two 
thousand  inhabitants,  as  aforesaid,  the  selectmen  shall  not  be 
assessors,"  so  that  said  section,  as  amended,  shall  read  as  follows  : 

"SECT.  12.  Annual  town  meetings  shall  be  held  in  March,  and 
the  voters  shall  then  choose,  by  a  majority  vote,  a  clerk,  three,  five 
or  seven  inhabitants  of  the  town  to  be  selectmen  and  overseers  of 
the  poor,  when  other  overseers  are  not  chosen,  three  or  more  assess- 
ors, two  or  more  fence  viewers,  treasurer,  surveyors  of  lumber, 
tythingmen,  sealers  of  leather,  measurers  of  wood  and  bark,  con- 
stables, collectors  of  taxes,  and  other  usual  town  officers  ;  and  if 


REPORT    OF    TAX    COMMISSION.  177 

one-third  of  the  voters  present  are  in  favor  thereof,  they  shall 
choose,  by  major  vote,  one  auditor  of  accounts,  all  of  whom  shall 
be  sworn.  Treasurers  or  collectors  of  towns  having  more  than  fif- 
teen hundred  inhabitants  shall  not  be  selectmen  or  assessors.  Towns 
having  less  than  two  thousand  inhabitants,  by  the  last  preceding 
census,  may  choose  three  or  more  assessors  or  the  selectmen  may 
be  assessors  as  provided  by  section  one  hundred  and  two  of  chapter 
six,  but  towns  having  more  than  two  thousand  inhabitants,  by  such 
census,  shall  choose  three  or  five  assessors  as  follows  :  At  the  annual 
town  meeting  next  held  after  this  act  becomes  operative,  if  such 
town  shall  elect  three  assessors  it  shall  elect  one  of  them  to  serve 
for  one  year,  one  for  two  years  and  one  for  three  years  and  one  at 
each  annual  meeting  thereafter  to  serve  for  three  years  ;  if  such 
town  shall  elect  five  assessors,  two  of  them  shall  be  elected  for  one 
year,  two  for  two  years  and  one  for  three  years,  and  thereafter,  at, 
each  annual  meeting,  shall  elect  one  or  two  for  three  years  as  their 
terms  shall  expire.  In  towns  having  more  than  two  thousand 
inhabitants,  as  aforesaid,  the  selectmen  shall  not  be  assessors." 

SECT.  2.  Section  thirty- two  of  said  chapter  is  amended  by 
striking  out  the  words  "assessors  and"  in  the  first  line  and  by  add- 
ing to  said  section  the  words  following:  "And,  unless  otherwise 
provided  in  their  charters,  assessors  shall  be  chosen  on  said  day  to 
hold  office  as  provided  for  the  election  of  assessors  in  towns  having 
more  than  two  thousand  inhabitants  by  section  twelve  ;"  so  that 
said  section,  as  amended,  shall  read  as  follows: 

SECT.  32.  "The  subordinate  officers  of  cities,  when  their  char- 
ters do  not  otherwise  provide,  shall  be  chosen  on  the  second  Mon- 
day of  March,  annually,  or  as  soon  after  as  practicable,  and  hold 
their  offices  one  year  therefrom,  and  until  others  are  chosen  and 
qualified  in  their  stead,  and,  unless  otherwise  provided  in  their 
charters,  assessors  shall  be  chosen  on  said  day  to  hold  office  as 
provided  for  the  election  of  assessors  in  towns  having  more  than 
two  thousand  inhabitants  by  section  twelve." 


12 


1  78  REPORT    OF    TAX    COMMISSION. 

An  Act  to  amend  section  seventy-three  of  Chapter  Forty- 
Nine  of  the  Revised  Statutes. 

Section  seventy-three  of  chapter  forty-nine  of  the  Revised  Statutes 
is  hereby  amended  by  striking  out  the  word  "one"  in  the  ninth  line 
and  inserting  instead  thereof  the  word  "two",  so  that  said  section, 
as  amended,  shall  read  as  follows  : 

SECT.  73.  "No  person  shall  act  as  agent  of  an  insurance  com- 
pany until  he  has  filed  with  the  commissioner  a  duplicate  power  of 
attorney  from  the  company  or  its  authorized  agent  empowering  him 
to  so  act.  Upon  filing  such  power  the  commissioner  shall  issue  a 
license  to  him  if  the  company  is  a  domestic  company  or  has  received 
a  license  to  do  business  in  this  state  ;  and  such  license  shall  continue 
until  the  first  day  of  the  next  July,  and  may  be  renewed  from  year 
to  year  on  producing  a  certificate  from  the  company  that  his  agency 
is  continued.  For  each  such  license  or  renewal  the  commissioner 
shall  receive  two  dollars.  And  if  any  person  solicits,  receives  or 
forwards  any  risk  or  application  for  insurance  to  any  company, 
without  first  receiving  such  license,  or  fraudulently  assumes  to  be 
an  agent,  and  thus  procures  risks  and  receives  money  for  premiums 
he  forfeits  not  more  than  fifty  dollars  for  each  offence  ;  but  any 
policy  issued  on  such  application,  binds  the  company,  if  otherwise 
valid. 


An  Act  to  repeal  certain  acts  consolidated  in  "An  Act  to 
provide  for  the  raising  of  Revenue  by  Taxation. 

SECT.  1.  The  following  public  acts  or  sections  of  acts,  named 
and  herein  designated  are  repealed  except  so  far  as  the}T  are  pre- 
served in  the  following  section : 

Chapter  six  of  the  Revised  Statutes,  entitled  "The  assessment 
and  collection  of  taxes." 

Chapter  three  hundred  and  twenty-nine  of  the  Public  Laws  of 
1885,  entitled  "An  Act  providing  for  the  taxation  of  life  insurance 
companies. 

Section  two  of  chapter  three  hundred  and  fifty-nine  of  the  Public 
Laws  of  1885,  entitled  "An  Act  to  amend  the  Revised  Statutes." 


REPORT    OF    TAX    COMMISSION.  179 

Chapter  three  hundred  and  fifty-three  of  the  Public  Laws  of  1885, 
entitled  "An  Act  to  amend  section  seventy  of  chapter  six  of  the 
Revised  Statutes,  relating  to  assessment  of  taxes  in  places  not 
incorporated." 

Chapter  three  hundred  and  fifty  of  the  Public  Laws  of  1885, 
entitled  "An  Act  to  amend  section  one  hundred  and  seventy-five 
of  chapter  six  of  the  Revised  Statutes,  i elating  to  suit  for  taxes." 

Chapter  seventy-five  of  the  Public  Laws  of  1887,  entitled  -'An 
Act  to  amend  section  forty-one  of  chapter  six  of  the  Revised  Stat- 
utes, relating  to  tax  on  railroads." 

Chapter  seventy-two  of  the  Public  Laws  of  1887,  entitled  "An 
Act  additional  to  and  amendatory  of  sections  fifty-five,  fifty-six, 
fifty-seven  and  fifty-eight  of  chapter  six  of  the  Revised  Statutes, 
relating  to  corporations." 

Chapter  seventy-four  of  the  Public  Laws  of  1887,  entitled  "An 
Act  to  amend  section  sixty-four  of  chapter  six  of  the  Revised  Stat- 
utes, relating  to  taxation  of  corporations." 

Chapter  eighty  of  the  Public  Laws  of  1887,  entitled  "An  Act 
additional  to  and  amendatory  of  section  eighty-two  of  chapter  six 
of  the  Revised  Statutes,  relating  to  the  collection  of  highway  taxes 
on  lands  in  unincorporated  places." 

Chapter  two  hundred  and  ninety-six  of  the  Public  Laws  of  1889, 
entitled  "An  Act  in  relation  to  suits  for  taxes." 

Chapter  one  hundred  and  seventy-five  of  the  Public  Laws  of  1889, 
entitled  "An  Act  in  relation  to  the  taxation  of  trust  funds." 

Chapter  two  hundred  and  seventy-four  of  the  Public  Laws  of 
1889,  entitled  "An  Act  to  amend  section  six,  chapter  six  of  the 
Revised  Statutes,  relative  to  property  exempt  from  taxation." 

SECT.  2.  The  acts  declared  to  be  repealed  remain  in  force  for 
the  trial  and  punishment  of  all  past  violations  of  them,  and  for  the 
recovery  of  penalties  and  forfeitures  already  incurred  and  for  the 
preservation  of  all  rights  and  their  remedies  existing  l>y  virtue  of 
them,  and  so  far  as  they  apply  to  any  office,  trust,  jtuLcial  pro- 
ceeding, right,  contract,  limitation  or  event  already  affected  by 
them.  The  repeal  of  the  acts  aforesaid  does  not  revive  any  of  the 
acts  repealed  by  them. 


APPENDIX 


APPENDIX. 


183 


335    §325     S 

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184 


REPORT    OF    TAX    COMMISSION. 


Table  II— The  Following  Table  Shows  the  Debt  (funded  and  un- 
funded} of  each  State,  the  Amount  Raised  by  Taxation,  for  State 
Purposes,  and  the  State  Tax  on  One  Hundred  Dollars.  Taken 
from  Spofford's  American  Almanac. 


State. 

Date  of  statement. 

Amt  of  state  debt 

X 
c3 

V 

"S 
3 

«• 

a 

< 

State  tax  on  $100. 

Alabama 

Oct.  1    1888 

$  9  489  500 

$   1,468,72' 

.55 

Arkansas                             

Oct.  1    188H 

4,861,1  In 

425,000 

.40 

California   ...           

July  1    1887 

2,698,000 

4,455,383 

.56 

Colorado  ...                          .... 

Dec.  1    1888 

586,318 

.40 

Connecticut    
Delaware  

Jan.   1    1888 
Dec    VI    1887 

3,740,600 
46o,000 

437,157 
117,458 

.12 

Florida  

Jan.  1    1888 

1,275,000 

367,197 

40 

Georgia 

Oct.  1    1888 

8  752  305 

]  372  tjo.i 

35 

Illinois    

Oct.  1    1888 

3  004  95  1 

44 

Indiana  
Iowa.                          . 

Nov.  1     1888 
July  1    1«8& 

6,470,608 
245  4i5 

1,270,000 
2  593  095 

12 
.25 

Kansas    .      ...                  .... 

July  1    1888 

1   161  776 

1  210  931 

.41 

Kentucky   .  .  .             
Louisiana 

July  1    1888 
Jan.   1    1888 

674,000 
11  982  621 

3,572,434 
1  566  120 

.47    1-2 
.60 

Maine    

Jan.   J    1888 

3,959  000 

1,021,021 

.27   1-2 

Maryland                           . 

Oct.  1    1887 

10  960  53') 

910  919 

18  3-4 

Massachusetts    
Michigan 

Jan.  1     188s 
July  1    188* 

$1,429,681 

239  993 

5,321,234 
1  950  085 

.11    1-2 
15  4-10 

Minnesota 

Aug.  1    1887 

3  965  000 

642  883 

.15 

Mississippi  —  .    
Missouri  

Jan.  1    18^8 
Jan.  1     1889 

2,935/258 
9,525  000 

831,124 
2  839,523 

.35 
40 

Nebraska      ... 
Nevada           

Nov.  1    1888 
Jan.  5    1888 

449,267 
380  000 

2,287,093 
236  305 

% 

New    lUmpsliire    
New  Jt-r-io> 

June  1    1887 
Nov    1    1887 

2,966,363 
1  396  300 

400,000 
2  743  754 

.13  8-10 
25  4-10 

New  1'ork     .  .. 

Sept    1     1889 

6  652  160 

12  577  353 

35  52-100 

North  Carolina  

Dec    1     1888 

14  540  145 

515  674 

30 

Ohio     

Nov    Li    1888 

3416  465 

4  9*3  ^74 

29 

Oregon.          

Jan    1    1881J 

315  000 

40 

Pennsylvania     

Dec.  1    1888 

14  S52  589 

6  495  704 

30 

Rhode  Island 

Jan    1    1888 

1  341  000 

394  237 

12 

South  Carolina     

Nov.  1     1887 

7  411  021 

766  878 

52   1-2 

Tennessee 

Jan    1     188(5 

17  000  000 

954  903 

30 

Texas  

Aug  31    1887 

4  237  730 

2  027  518 

25 

Vermont   
Virginia          
West  Virginia 

Aug.  1    1888 
Oct    1     1888 
Oct    1    18H8 

135,500 
31,863,043 

457,658 
1,783,702 
766  205 

.12 
.40 
2ft 

Wisconsin  

Oct.  1    188* 

- 

868,453 

,15    1-10 

APPENDIX. 


185 


Table  III — Savings  Bank  Statistics. 


* 
2 

M 

a 

_. 

£ 

i 

0 

a 

1 

jS 

jj 

z 
B 

*! 

0 

> 
73    *• 

00 

9 

a 

o 

T3 

9 

1 

2 

®  -o 

73  ¥» 

h    t* 

*  i 
-3 

s  s 

*  ® 
»  *" 

cfl 

I 

9 

T3 

Q 

? 

0) 

tft. 

3 
11 

il 

o  a} 

—   s>- 
3  9a 

3    iC  a 

ii 

«  Si 

£^ 

11 

£         a 

H                 < 

M« 

2J  .5   § 

£   # 

-^    — 

N—      W 

1874    $  96,799 

$3  1,05  1,963  $3  20 

$686,087 

$7,853,258 

1875      101,326 

32,083,314 

316 

893,589 

8,666,484 

- 

5.9  + 

1876        90,621 

27,888,764 

306 

998,749 

8,156,544 

15,950 

5.2  + 

1877        88,661 

26,898,432 

30.1 

1,018,049 

7,496,441 

15,892 

4.1  + 

1878        77,978 

23,173,112 

297 

976,044 

6,231,695 

13,46* 

4.2  + 

$1,054,275 

1879 

75,444 

23,052,663 

27  f 

993,937      5,383,617 

5,950 

4.3  + 

1,451,099 

1880 

80,947 

2  )  ,3  45  ,988 

287 

1,114,473      5,239,463 

14,895 

4.4 

1,347,068 

4881 

87,977 

28,361,401 

301      1,199,463      4,984,511 

27,118 

4.3  + 

1,542,087 

i 

•1882 

95,489 

31,430,636 

309 

1,408,307      5,180,472 

18,887 

4.2  + 

1,076,449 

1883 

101,822 

33,516,729 

308 

1,535,108      5,216,629 

20,840 

4.2  + 

1,180,279 

1884 

105,680 

35,101,644 

311 

1.583,537      5,438,608 

20,788 

4.16 

1,200,405 

1885 

109,398 

37,364,394 

321 

1,708,111      5,645,969 

22,827 

4.05+ 

1,292,402 

1886 

114,691 

39,475,138 

344 

1,900,238      6,113,414 

23,743 

4.09+ 

1,428,363 

1887 

119,229 

41,283,614 

346 

2,120,065      6,352,794 

23,826 

4. 

1,515,530 

1888 

124,562 

43,786,168 

357 

2,303,575      6,407,247 

25,269 

4.14  + 

1 

1889 

132,192 

43,977,085 

332 

2,533,126      6,680,055 

- 

4.14 

1,805,229 

*The  report  of  Bank  Examiner  Bolster  for  1878,  the  last  which  gives  data  of  the 
kind  in  an  aggregate  form,  shows  that  there  were  in  1877  seventy-four  depositors 
whose  balances  averaged  over  §8,000. 


186 


REPORT   OF    TAX    COMMISSION. 


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INDEX  TO  SUBJECTS, 


REPORT. 

PAGE. 

American  system  of  taxation » 10 

Assessors,  State  board  recommended 33 

Assessors  of  taxes,  new  provisions  relating  to,  proposed 37 

Collateral  inheritance  taxation;    constitutionality  of;    review  of 

decisions 58 

Conclusion  of  Report 86-88 

Corporate  franchise  and  organization  taxes  recommended,  and  on 

special  acts  of  legislation 64-67 

Dogs,  taxation  of.     Laws  of  other  states 43-45 

Equalization.     Modes  in  the  several  states.     Defects  of  the  Maine 

system 27-32 

Exemptions,  policy  of.     Family  libraries  and  furniture 53-54 

Insurance  companies,  tax  on  gross  receipts ;  plan  for  taxation  of 

Mills  Mutual  Companies 68-70 

Income  tax  law,  why  not  recommend*  d 35 

Listing  and  other  assessment  systems  in  the  different  states 15-21 

Listing  system,  results  of 22-24 

Loan  and  Building  Associations,  why  no  taxation  of  proposed 82 

Mortgaged  property,  taxation  of.     Method  proposed 46-48 

Poll   taxes  in   various  states,  suggestions  of  town  assessors  con- 
cerning   39-42 

Railroads,  taxation  of.     Systems  of  the  various  states 71-77 

Remedy   for   unequal  taxation  discussed.     Recommendations  of 
Governors  Dingley,  Garcelon,  Davis,  Plaisted,  Robie,  Bodwell, 

Burleigh 12-15 

Report  of  commissioners 3 

Resolve  providing  for  special  tax  commission 2 

Sales  of  land  for  taxes ;  discussion  of  the  subject ;  changes  proposed 

in  the  law 85 


INDEX.  191 

PAGE. 

State  taxation  discussed  ;  new  sources  proposed I 55-57 

Savings  banks,  taxation  of  in  other  states;  tax  on  accumulations 

of,  proposed 77-80 

Single  tax  theory  discussed 7 

Statistics  of  valuation  deficient  in  this  State 34 

Street  railroads,  why  local  tax  recommended 40 

Streets  and  private  corporations 51 

Systems  of  taxation  ;  origin  of  Maine  system;  changes  proposed..          4 

Valuation,  relative,  of  real  and  personal  property  in  the  whole 

country ;  inequalities  of  Maine  taxation 11 


PKOPOSKD  BILL  FOR  ACT  TO  PROVIDE  FOR  THE  RAISING  OF 

REVENUE  BY  TAXATION 89 

Poll  taxes 89 

Property  taxes 89 

Street  railroads 90 

Personal  property 91 

Exemptions 91 

Dogs 93 

Real  estate 95 

Mortgages  of  real  estate 95 

AVood,  bark  and  timber  under  contract 97 

Personal  property,  where  taxable 97 

Assessors'  duties 105 

Tax  payers'  oath 107 

Town  assessors'  oath  after  assessment 109 

Report  on  corporate  property 112 

State  hoard  of  assessors 114 

State  taxes 118 

State  taxation  of  railroads 119 

Taxation  of  sleeping  cars 122 

Telegraph  companies 123 

Telephone  companies 124 

Express  companies 125 

Taxation  of  collateral  inheritances 126 

Insurance  companies 130 

Unlicensed  insurance  companies 131 

Domestic  life  insurance  companies 132 

"Savings  banks  and  trust  companies 133 

Taxation  of  companies  when  no  returns  have  been  made 135 

Taxation  of  corporate  franchises 135 

Enrolment  and  organization  taxes 136 


192  REPORT    OF    TAX    COMMISSION. 


Other  private  or  special  acts  of  legislature  ........................  137 

Taxation  of  lands  in  places  not  incorporated  ......................  13&. 

Assessment  of  taxe&Jn  incorporated  places  ........    ..............  145 

Applications  lor  abatements  ............    ........................  146. 

Assessment  of  taxes  in  plantations  ...............................  15O 

Collection  of  taxes  in  incorporated  places  ........................  151 

Duties  of  town  treasurers  when  appointed  collectors  of  taxes  .....  164 

Special  provisions  ...............................................  166. 

Enforced  collection  >»f  taxes  on  real  estate  ........................  166- 

Collector's  notice  of  sale  .........................................  167 

Collector's  notice  of  sale,  form  ...................................  16& 

Special  notice  to  owners  .........................................  169 

Collector's  return  of  sale  .........................................  169 

Collector's  return  of  sale,  form  ...................................  1  70 

Collector's   certificate  ............................................  171 

Redemption  within  two  years  ..................................  171 


BILLS  FOR  ACTS  AMENDATORY  OF  EXISTING  STATUTES. 
Act  to  amend  sections  seventy-nine,  eighty-two  and  eighty-three 

of  chapter  three  of  the  Revised  Statutes 1 75 

Act  to  amend  s<  ciions  twelve  and  thirty- two  of  chapter  three  of 

the  Revi-ed  Statutes 176; 

Act  to  amend  section  seventy-three  of  chapter   forty-nine  of  the 

Revised  Statures 178. 

Act  to  repeal  certain  aet?  consolidated  in  ""-An  Act  to  Provide  for 

the  Raising  of  K<  venue  by  Taxation*' 17& 


APPENDIX. 

Table  1  -  Comparative  State  valuation 183 

Table  II — Showing  debts  and  Sta^e  taxation  in  the,  several  states..  184 

Table  III— Savings  bank  statistics 185 

Table  IV — Showing  rate  of  taxation  and  amount  of  license  and 

agents'  fees  of  insurance  companies  in  the  several  state* 186- 


70407 


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